Accepting Credit Card Payments
To get started explaining how to accept credit card payments online, lets first take a look at the online payment process:
- A customer enters credit card details into your website / online store to purchase a product.
- Payment data is passed to a payment gateway, which acts as an interface between your website and banks. Payment gateways check for fraud, log transactions, and act as a secure interface to your bank.
- The payment is processed by your merchant facility, or alternative acquirer such as AMEX / JCB / Discover.
- The result of the transaction is passed back to the payment gateway, and returned to your shopping cart.
To accept credit card payments directly on your website you will need;
- An "Online Merchant Facility" with a bank.
- And a "Third Party Payment Gateway".
These two points are sometimes combined into a single product / solution (such as Stripe and PayPal).
There are setup and transaction costs involved Merchant Facilities & Payment Gateways, so if your business is a startup or you're trialing online sales you may want to consider starting with PayPal.
Online Merchant Facilities
Selecting a bank merchant facility should be the first activity on your do list. When discussing merchant facilities with banks, the pricing is normally a negotiated rate; so shop around and pit them against each other to get a good rate. You do not have to use the same bank that your conduct your everyday banking with; the only difference in choosing an alternate bank will be a slight delay to settlement.
The product required is an “Online Merchant Facility for use with a Third Party Payment Gateway”. Here are some example products:
- Westpac Bank - http://www.westpac.com.au/business-banking/merchant-services/payment-gateway/third-party-payment/
- Commonwealth Bank - https://www.commbank.com.au/business/merchant-services/accept-online-payments/payment-gateways.html
- Bank West - http://www.bankwest.com.au/business/business-accounts/business-account-services/merchant-services
- St George - http://www.stgeorge.com.au/business/payment-solutions/ecommerce-solutions/third-party-provider-solutions
- NAB - http://www.nab.com.au/business/payments-merchants/receiving-payments/nab-ecommerce-merchant-account
Website Payment Gateways
The second party you will need to contact is a Payment Gateway solution. A payment gateway is similar to a physical payment terminal. A payment gateway encrypts sensitive credit card information, then passes customer details securely between the merchant and the payment processor.
Every client's situation is unique, so it is recommended that you contact us before making a final decision on your payment gateway and merchant facility configuration.
- Authorize.net (US,CA) - https://www.authorize.net/
- SecurePay (Australia) - https://www.securepay.com.au/
- eWay (Aus,NZ,Asia) - http://www.eway.com.au/
- MiraPay (CA) - https://www3.eigendev.com/e/gateway.php
- Orbital (CA) - http://www.chasepaymentech.com/payment_gateway.html
- Stripe (Global) - http://stripe.com/
AMEX / Discover / JCB
Information on becoming a AMEX merchant can be accessed through the American Express website applicable to your country. Click here to submit an enquiry with AMEX to become an Australian merchant. After the application process, contact us to have a member of the Oncord team to assist you in setting up the payment method on your website.