There are so many things to consider when you are planning your ecommerce store and one of the most important considerations is how will you accept payments.
You may already have an EFTPOS merchant account, but will your bank allow you to take online payments using this facility? A lot of banks require you to open a separate “internet merchant” account.
In the past you needed an internet merchant account set-up and then use a payment gateway provider to process credit card transactions via your website. The alternative was to use PayPal only, if you didn’t want to go to the hassle of setting up the Internet merchant account.
Keep in mind that you may still need an EFTPOS merchant account to process telephone orders. But if you are thinking of capturing credit card details on your website then processing them via your EFTPOS terminal as a “card not present” transaction, think again. It may not be secure or PCI compliant to do this.
Today there are more options available; you might still choose to have an internet merchant account as it may speed up the settlement (transfer) of funds to your bank account, especially if you need daily cash-flow. If you are happy to wait a few days for the funds to be transferred to you, there are providers that have an “all in one” solution.
Here are 5 payment processors for your Australian ecommerce business.
PayPal – PayPal is quick and easy to set up a business account and integrate into your ecommerce platform. PayPal offer 3 different payment solutions, so you need to check which solution best fits your needs. But bear in mind it’s a good idea to accept credit card payments by another method as well. Customers may not be aware they don’t need a PayPal account to pay via PayPal. By giving your customer a choice of payment methods you have more chance of making the sale.
Accepts Visa, MasterCard and funds from PayPal accounts.
You do not need an internet merchant account setup with your bank.
Fees: 2.6% + $0.30 per transaction. And as you process more payments via PayPal they will offer volume discounts. (no monthly or setup fees)
Stripe – Credit Card payment processor available to Australian Business’s.
Easy to sign up, you will need personal identification though. Many hosted ecommerce platforms integrate with Stripe via a click or two. But Stripe also has developer code readily available if you are having a custom ecommerce solution built.
Stripe will automatically deposit payments into your nominated Australian Bank account 7 days after the transaction (excludes weekends), so you will need to wait until you receive your payments.
You do not need an internet merchant account setup with your bank.
Accepts Visa, MasterCard and American Express.
Fees: Stripe charges 1.75% + 30¢ for domestic cards and 2.9% + 30¢ for American Express or international cards. (no monthly or setup fees)
Securepay – SecurePay is an Australian owned business offering two styles of payment options.
• SecurePay Online Payments – an online payment solution that combines two ecommerce requirements – an internet merchant account and a payment gateway, you will need an Australian bank account to have your funds deposited. Fees are a flat 2.4% on Australian Visa and Mastercard transactions. (no monthly or setup fees). You do not need an internet merchant account setup with your bank.
• Payment Gateway – SecurePay acts purely as a payment gateway. For this option you will need an internet merchant account set up with your bank, plus a bank account that funds can be deposited into. When a customer purchases from you online, SecurePay acts as the “gateway” between you and your bank, the payment is then processed via your internet merchant account.
SecurePay Payment Gateway offers 2 packages;
A. $395 annual fee, then 0.45 per transaction
B. No annual fee – $800 for up to 3000 transactions in a 12 month period.
With both these fee options SecurePay acts as the payment gateway, so you will still incur a transaction fee with your bank each time a credit card is charged via your internet merchant account.
Depending upon the option you select with SecurePay and your bank, funds may be transferred into your bank account within a day or two. SecurePay does integrate easily with a lot of the hosted ecommerce platforms. But if you are having a custom ecommerce store built, then they do offer all the code for your web developer.
Pin Payments – Pin Payments is an Australian owned credit card payment processor that works like Stripe. You will need your ABN and your bank account number. Funds are deposited into your bank account 7 days after the transaction.
You don’t need an internet merchant account to integrate Pin Payments into your ecommerce store.
Fees are AUD transactions are charged at 1.75% + 30c (all other currencies charged at 2.6% + 30c). (no monthly or setup fees)
eWAY – is a worldwide organisation with a separate “arm” for several countries. In Australia, eWAY offer 2 different payment solutions.
The first is an internet merchant account and payment gateway all in one. So you do not need an Internet merchant account setup with your bank. eWAY have several plans for this solution.
The “Have A Go” plan has no setup or monthly fees and 2.6% transaction fee on all domestic and international credit cards for sales up to $2000 per month. Cards accepted are; Visa, MasterCard, American Express and Diners. They do offer volume discounts once you exceed $2000 per month in transactions.
If you have an internet merchant account – they will act as a payment gateway. They offer a couple of different plans available based upon the number of transactions you will process per month. For the VIP plan (50 or more transactions per month) setup is free. There is a monthly fee of $60, plus 0.40c per transaction. There is also the fee your bank charges you for processing the transaction via your internet merchant account.
The information on the providers listed is general, so when you are choosing any payment provider, consider the following;
• Fees – based upon $ and volume of transactions. Which is most affordable to your situation and as your business grows does the provider offer volume discounts.
• Settlement time – how fast you get the money paid into your bank account.
• PCI Compliant – all the providers listed above are PCI compliant. Essentially, PCI compliance is a set of requirements that ensures companies that process, store or transmit credit card information do so in a secure environment.
• Fraud protection – How are you protected if someone uses an illegally obtained credit card?
• Charge-backs – This happens if the transaction is disputed by the card holder and the funds you received are taken back off you and you are also charged a “charge-back” fee. How much is this fee?
• Type of cards accepted – Visa and MasterCard are standard. But what about American Express and Diners? These may or may not be important to you.
• Integration into your ecommerce platform – Is it some code for your developer? Or if you have a hosted solution will it just be a couple of clicks and some basic information.
• Check if your customers will stay on your website or be sent to a different site to make their transaction?
• Refunds – How are they handled through the payment processor? Do you have your original fees refunded to you?
There are quite a few different payment processors that you can use in Australia, but all operate in a different way, charge different fees and deposit funds into your account at different time periods. So it pays to do your research and find which the best solution is for your needs is.
Have you used any other payment processors in Australia?
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