ONLINE PAY SYSTEMS
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Online Pay Systems for Internet Merchants and Shoppers
Whether you are an internet store owner, or an online shopper, subscribing to a reliable online pay system - credit/debit cards processors, secured global paysystems - always makes things easier for you. Of course, the most common payment mode is still via direct credit/debit card transactions. But, if you prefer not to divulge your credit card details every time you shop on the internet, paying through a secured third party payment processor system is a convenient alternative.
Online pay systems includes long attested credit cards merchant accounts as well as newer pay systems such as internet cash, i-bills, e-checks, smart cards, stored value systems, digital cash, mobile payments and so forth that requires anything from just a verified email address to a validated credit or debit card account to effect payment. Each system has its merits and demerits. The cost of system implementation and transaction charges varies, but what's more important is the security and integrity of the sytem.
To choose a pay system most suitable for your use, you need to look at various factors -cost, convenience and practicality. For example, if you have an online store, you would like to offer more options and convenience to your shoppers by offering a number of payment systems that are most popular. So, anybody who has a credit/debit card or an account with anyone of those systems can shop with ease from your store. If you are into auctions on eBay, Paypal provides a seamless integration to the auction system.
Opening an account at most third party online payment processors is free but most do charge a transaction-based fee, ranging from about 1.68-3.5 percent of the transaction amount when you receive payment from buyers. It is usually free for the account holder to make a payment when they shop online. Merchant account providers, however, do charge a set-up fee for your merchant account application. Unlike third party payment processors, most merchant accounts charge monthly fees in the form of gateway fees, statement fees or equipment/software leases other than the regular transaction fees. Their discount rates (charges on transaction) are lower though.
In general, it is more costly to maintain a merchant account, but then you save on the lower rates per transaction. Hence, it is more suitable, or could be even more economical for those business with higher sale volumes. Another obvious advantage with mechant accounts is that unlike the case for third party payment processors, your buyers are not required to sign up as members just to shop from your site.
Below is a list of some of the more common online third party payment processors, low-cost merchant accounts and their features.
Charge.com provides one of the cheapest credit card processing system. It offers three different options for processing credit cards. You can choose real-time processing with a virtual terminal or a computer software for either PC or Macintosh, or an electronic keypad terminal. Their discount rates are among the lowest in the industry - at only 1.66% for retail merchants, and only 2.39% for mail order and Internet merchants. A transaction fee of 25 cents applies for each transaction. There is no setup and application fees for your merchant account and no charges for the software.
Electronic Transfer Inc is a Merchant Bankcard organization selling merchant services in the United States since 1989. There is a set-up fee of $49 for a merchant account, a $9.95 monthly statement charge and a $10 monthly charge for using the payment gateway. Their discount rates are reasonably low, at 1.69% for swiped transactions and only 2.18% for keyed transactions. A transaction fee of 25 cents and 29 cents applies for each swiped and keyed transaction, respectively.
Third Party Payment Processors
PayPal, an eBay Company, enables any individual or business with an email address to securely, easily and quickly send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and utilizes the world's most advanced proprietary fraud prevention systems to create a safe, global, real-time payment solution. PayPal is now a global leader in online payment solutions with over 30 million account members worldwide. Available in 38 countries around the world, buyers and sellers on eBay, online retailers and businesses, as well as traditional offline businesses are transacting with PayPal. Opening an account is FREE. Paypal doesn't charge for sending money (making payments), but charges 0.7% + 30¢ to 2.9% + 30¢ for receiving payments.
Ikobo provides personal money transfer facilities much like paypal, and it provides merchants the ability to accept credit card and bank account payments from anybody. Unlike for paypal international merchants, your customers do not have to sign up as a member to purchase from you. Its services is available to a wider region - 170 countries - too. Another unique feature is that it allows individuals, as well as merchants to receive funds directly through deposits into a US bank account or via a Visa PLUS debit card which allows one to withdraw the money at 800,000 ATM's worldwide.
Although 2CheckOut is a third party payment processor, it provides services much like merchant account providers do, through the usage of its secured payment gateway. There is a one-time setup fee of $49 and you pay nothing else except for the transactions you make which is at 5.5% of transaction (sale amount) plus $0.45 per transaction. This is particulary suitable for small business with low volumes as you won't have to incur usage cost if you don't make a sale.
StormPay Inc. is an online payment system, which allows anyone with an email address to send or receive payments. StormPay Inc. offers customers and vendors alike, a safe and secure method to do financial transactions across the Internet, while reducing the risk of exposing your financial information. StormPay's system is very much like an online checking account. The account can be used to send or receive funds for online purchases or charity donations, etc. After funding their account, the customer has the ability to send funds to any recipient with an email address. Most "deposit" options are instant, allowing the customer to immediately make a payment for an online product, service, or subscription. Customers may deposit funds into their StormPay accounts via credit card, online check, 900 Pay, Money Order, or by visiting one of our Walk-In funding locations. Opening an account and sending money (making payments) is FREE. To receive money (payments from buyers), Stormpay charges 2.9% plus $0.39 per transaction.
Vupay provides a solution to pay (or get paid) anyone anywhere online in a fast and secured environment. The system is so designed so that anyone anywhere with an email account can send or receive money. Users may get their money anytime by depositing the desire amount to their ATM card, minus fees. Opening an account is FREE and with one account you can transfer to and from many other ePayment processors. For a one to one transaction, Vupay charges you 2% of the amount transacted with a minimum of $0.25. A global ATM card is given to account holders, absolutely free for the convenience of withdrawing your money from ATMs around the world. Debit cards are supplied and managed by a third party in USA. Vupay charges a minimal $5 postal fees for posting the ATM card to you.
NetPay is a full e-commerce enabled payment system aimed at the global market. NetPay’s focus is at providing a secure payment system that provides one of the Net’s most private and service oriented online businesses. All funds are allocated into gold and offshore Class A Banks. NetPay’s primary goal is at providing every web user a FREE and secure Internet currency account with the ability to either store, transfer, exchange, or spend in all of the alternative Internet e-currencies available. Currently, NetPay utilizes its own form of currency along with the popular E-Gold system to accept deposits or to accept and transfer payments from client-to-client or business-to-business. Opening an account is free. There is a monthly card fee of $5 for its global debit card.
To know more about current internet transaction systems, read this consumer guide by Federal Trade Commission(FTC) and browse through this electronic payments website by Scottish Enterprise and UK online for business.
