Internet marketing resources, ecommerce web site design tutorials and  just for fun - free cell phone ringtones!
  Taming the Beast - quality web marketing and ecommerce development services

Payment processing for newbies

Posted by Michael Bloch in ecommerce (Sunday February 25, 2007 )

After a period of using PayPal, you’ll be much better placed to judge future volume, be more familiar with the whole ecommerce process and scene and then be more confident to negotiate a better deal with a gateway/merchant account provider.

Learn more about back-end ecommerce.

-->

One of the ecommerce related questions I’m most commonly asked by people new to online business is regarding merchant accounts and payment gateways; particularly for small business owners in Australia. It can certainly be a minefield for people with many traps for the unwary and I can certainly understand the confusion

I’ve written more on this in my article on merchant accounts, payment gateways and third party payment processors; but in a nutshell, here’s my advice to anyone just starting out who hasn’t a clue as to what their transaction volume might be – and that would be most of us launching into a new small online business venture.

My first bit of advice to Australian startups would be to stay away from using Australian financial institutions for the gateway. My experiences with them has been that they are restrictive, expensive, unreliable, paranoid and on the few occasions I’ve called them, their staff had little idea of their own products. My recommendation would be to go with PayPal initially; the main reasons being:

– no setup costs
– no monthly fees
– solid company
– wide acceptance
– trusted processor
– no long term contracts
– excellent, free and simple tools
– compatibility with many ecommerce applications
– good reporting
– free shopping cart application
– PayPal now has Australian offices, i.e. local support.

While PayPal’s fees can be a little bit steeper, I think it’s a really good way to go for new businesses that may not have the capital to sink into setting up merchant accounts and payment gateways while in startup phase. Why invest that cash into a high end setup and be locked into a contract on an untested idea?

I’ve been using PayPal for some years now and have found it to be an excellent solution for the volume of transactions I process. I’ve never had a funds transfer go awry and on the few occasions when we were accidentally overcharged by them in regards to fees; PayPal refunded the discrepancy quite quickly.

After a period of using PayPal, you’ll be much better placed to judge future volume, be more familiar with the whole ecommerce process and scene and then be more confident to negotiate a better deal with a gateway/merchant account provider.

Learn more about back-end ecommerce.



 

 
Comments for Payment processing for newbies

No comments yet.

Sorry, the comment form is closed at this time.