How can you take card payments across the net?
Written by Chris Barling
Monday, 04 April 2011 00:00
There are several ways that merchants can take card details securely across the net. If you are just starting out in business, the best way to take payments is through PayPal. This is generally low cost and easy to set up. PayPal enables buyers to use their credit or debit cards as well as using any balance in their PayPal accounts.
The second option is to process card payments in real time on the internet through your own merchant account. Once you have established your business, this is usually cheaper than using PayPal for all payments, but you do need ‘merchant status’. This is available from all of the major banks, and they will charge a percentage of each credit card payment, and normally a fixed charge per debit transaction. You then use a ‘Payment Service Provider’ (PSP) to link your website, the online buyers and your merchant account. Providers offering this service include Actinic Payments, WorldPay, Authorize.Net and many others. As well as paying the bank, you also pay a small fee for each transaction to the PSP, typically 10p / 12c or less.
In the past, merchants captured card details and stored them at their site, then later processed them through a PDQ machine. This option is no longer viable as it is not allowed by bank rules and can result in heavy fines. Now, physical stores that already have merchant accounts should apply to their provider for ‘Internet Merchant Status.