The eCommerce guide to accepting online payment

If you’re setting up online, you’ll need to be able to accept online payment from your happy web customers. The more forms of payment you can take, the more convenient your eCommerce store will be – and the more transactions you’ll process. So how do you go about setting up secure online payment systems which offer you flexibility and good value? This blog will look at everything you need to get started, offering alternatives to Paypal and talking you through the biggest and best service provide

Written by TheGenieLab

Jun 26, 2014

Join the GenieLab Community

Receive regular updates and inspiration to help your business stay ahead of the game.

Need Assistance?

Shopify Plus Checkout Performance: What Slows You Down and How to Fix It

Why Checkout Performance Makes or Breaks Shopify Plus Revenue Cart abandonment at the checkout stage is one of the mo...

Mastering Multi-store Setups with TheGenieLab on Shopify Plus

Key Highlights Discover how a Shopify Plus multi-store setup can scale your business, much like upgrading your gami...

How to Choose a Shopify Plus Partner for Custom Checkout Development

Why Custom Checkout Matters for Shopify Plus A generic checkout leaves conversion on the table. For Shopify Plus merc...

Global Brands: Why Choose Shopify Plus Consulting Services?

Key Highlights Scaling a business into one of the most valuable global brands requires strategic planning and robus...

Magento to Shopify Plus Migration: Why TheGenieLab Is the Expert Choice

Key Highlights Migrating your eCommerce store from a platform like Magento to Shopify Plus involves moving all your ...

WooCommerce to Shopify: Should You DIY or Hire a Migration Agency?

Key Highlights Migrating from WooCommerce to the Shopify platform offers store owners enhanced scalability, securit...

If you're setting up online, you'll need to be able to accept online payment from your happy web customers. The more forms of payment you can take, the more convenient your eCommerce store will be. This blog will look at everything you need to get started, offering alternatives to Paypal and talking you through the biggest and best service providers including Sage Pay Online and Netbanx.

What do I need?

To start receiving credit card payments through your eCommerce store you'll need: around 2-4 weeks to play with, a merchant bank account, and a payment service provider (PSP).

What is an online merchant account?

If you're taking your business onto the web, you'll already have a merchant account with your bank, but this won't cut it for taking credit card payments online. You'll need an internet merchant account with a financial institution. Most banks offer this service.

How much does an online merchant account cost?

The cost of this service will vary. Every account comes with fees, charged either periodically or per transaction. Take a good look at how different accounts charge you and how your business will work online to get the best deal.

How to set up your account

Before applying you'll need to decide which types of payment you want to accept, as these will vary from provider to provider. You'll also need to submit an application form to confirm you are a legitimate business. Once approved, you'll need a payment gateway through a payment service provider (PSP).

What is a payment service provider (PSP)?

This is an intermediary between your online business and your bank. It takes your customers' payment details, confirms them with your bank and delivers the results back to you with an authorisation or a rejection.

Which should I choose?

SagePay Online, SECpay (PayPoint), Datacash, Netbanx and Worldpay Bank Direct are five of the biggest PSPs which, because of their size, are compatible with a wide range of online merchant accounts. PSPs charge in a variety of ways — some take payment annually, some per transaction. We recommend talking to account providers and PSPs individually and keeping a list of pros and cons before making a decision which could significantly impact your income.

But what about PayPal?

All of these services can be used as alternatives to PayPal. With an online merchant account, the minute the money makes it though your PSP to your account, the money is yours. With PayPal, the money your customers pay is theirs, until you demand it — and should you breach PayPal's T&Cs, they could close your account, taking "their" money with them.

How can web developers help?

If you're looking to integrate your merchant account with your shopping cart, or link all of your services up together behind the scenes, a web developer can offer great, long-term value. To learn more, just give us a call or drop us a line today!

Related reading:

Want help setting up the right payment stack for your store? Our Shopify Plus agency can advise on gateways, fees, and integration.

View all blog posts