Setting Up Your Payment Options
When you're selling things, you need people to be able to pay
you. Sure, they could send you cheques in the post, but that's
not really convenient or scalable, is it? And not only that, in
todays modern business environment customers have come to expect
quick, reliable and secure payment options. To do business
online in the 21st century, you need to be able to accept credit
card payments electronically and securely - and, luckily for
you, it's never been easier. Here's the whole process, in five
easy steps.
Step 1: Choose a Payment Service.
While you could get a merchant account and do your own card
processing, it isn't usually worth it, unless you do an awful
lot of transactions. It can cost hundreds of dollars to setup
your own merchant account and the ongoing fees are staggering.
For most businesses, third-party payment services are a better
solution, and there are lots of services out there that let you
accept card payments for a small fee.
When you choose a payment service, then, the main things you
want to consider are the prices, and whether your customers will
trust it. You used to need to consider which services your
customers would have accounts with, but as most services now let
you accept payments from people who don't have accounts with
them that's not much of an issue any more.
Right now, the biggest general payment player is PayPal, and
they're worth considering first. StormPay (www.stormpay.com) is
a decent general-purpose PayPal alternative, and useful to keep
around as a backup. You might also like to check out more
specific services, such as AuctionCheckout (if you're taking
payments for auction items) or ClickBank (non-physical products
only, popular for ebook and software sales).
Step 2: Create an Account.
The next step is to create an account at your chosen online
payment provider. This will require you to give out either your
personal name and address or a business name and address.
Depending on who you're registering with, you may also need to
give out credit card or bank details. It almost goes without
saying that you shouldn't give these details out to anyone
you're not sure of - be suspicious of payment services that
you've found with a search but never actually seen in use.
Step 3: Get Verified.
Before you can receive any significant amount of money, most
payment providers require you to become 'verified' - this is
usually nothing more than the minimum they need to do to comply
with the law. If you haven't been asked for your bank and credit
card details already, you will be at this point, and some
services will even ask you to fax them a photocopy of your
physical card, to prove you're the real cardholder. Some
services will even cross-reference your phone number with your
address and then phone you up to make sure it really was you.
Don't be too disturbed by all this: it's all in the name of
security, and you're not doing anything bad (or at least I hope
you're not!).
Step 4: Add the Payment Button to Your Pages.
When it comes time to actually start accepting customers' money
through the service, all you'll need to do in most cases is add
some kind of button or image of a button to your sales page that
says 'Pay Now'. The payment service will usually provide the
HTML for this, and a few tutorials to explain things like ways
to make sure that the correct amount shows up on the payment
page.
Step 5: Withdraw Often.
Whenever you're dealing with electronic payments, the final step
is to withdraw every time you get an amount of money you
consider significant, and an absolute minimum of once per week.
There are all sorts of reasons for this, but the biggest one is
that online payment services aren't anywhere near as strictly
regulated as other financial institutions, and aren't under that
much of an obligation to give it to you in any timely manner.
You should consider any money left with them to be at risk until
it's securely in your bank account. Besides, you don't want your
money sitting there earning interest for them instead of you, do
you?