Accepting payments online provides some major benefits. Customers expect this facility on more and more websites, and it can significantly improve the cash flow of your business.

Buyers often use the internet for speedy service; most are paid for by credit and debit cards. To accept credit cards online, you will have to make special banking arrangements.

Online card payments are “card-not-present” (CNP) transactions. CNP transactions carry a higher risk of fraud and banks require you to operate within a well-defined set of rules.

Selecting the best online payment option

Three different methods of online payment are available to your business:

• Merchant Account
• Payment-processing company
• Online shopping mall

Merchant Account

This option allows a business to operate with a greater amount of flexibility and also benefits a business where cash flow is very important. This method also allows for a high number of online transactions, most of which are expected to be low risk.

To utilise this option you should apply for an internet merchant account and discuss your requirements with the bank.

Payment-Processing company

This method is designed for business which does not expect to have a large number of online transactions. If your business has not been long and cannot provide well documented operations history then this method will also allow you to utilise the use of online sales. However sales income can take longer using this method.

Online Shopping Mall

If your business is small and has very limited IT skills then this method will possible suit your business. However you will have to pay higher transaction cost to establish your business on the internet.

The Digital Development Unit has dedicated e-business advisors who can offer expert advice on implementing online payment systems.

If you wish to contact the Digital Development Unit please telephone 01254 582426 or Contact Us
Or see more information online