More about accepting credit
cards online:
There are a number of different ways
that credit cards can be accepted online – information
about the general options is available from www.electronic-payments.co.uk:
- PSP - Automatic handling of payment
transactions online by a Payment Services Provider,
(or PSP) – the customer is transferred
to a secure website hosted by the PSP, but customised
to the same look and feel as the business’s
website. The transaction takes place and is validated
on the spot. The customer receives an acknowledgement
and control is returned to the business’s
website with an indication of whether the card
was accepted or declined.
- The most common type of
PSP acts as a gateway and passes the completed
transaction to an Acquiring Bank that is
providing the Internet Merchant Account.
Payment to the business then proceeds in
the normal way.
- Certain PSPs can also provide
a complete end-to-end service – they
provide an Internet Merchant Account and
will complete the transaction, settling
net funds directly into the business’s
bank account on a weekly basis.
- SSL - Encryption of credit card
details online, that are sent to the business
by e-mail – the business then validates
the payment and enters it via a PDQ machine that
is rented from the Acquiring Bank providing the
Internet Merchant Account. Payment to the business
then proceeds in the normal way.
- Note that in order to accept
credit card details online securely and encrypt
them for transmission by e-mail a special type
of web space called SSL space is required in
addition to the main website space.
- Typical costs
for a gateway PSP are:
- setup: £200
+ VAT
- annual
fee: £360 + VAT
- commission
on each transaction: 1.6% for credit cards,
25p for debit cards
plus Acquiring Bank costs as below.
- Typical costs
for an Acquiring Bank to provide an Internet
Merchant Account are:
- setup:
from zero to £200 + VAT
- monthly
fee: £30 + VAT, (i.e. £360
per annum)
- commission
on each transaction: 3.2 % for credit cards,
25p for debit cards
- Typical costs
for SSL web space are £80 to £100
per annum + VAT,
(note that an Acquiring Bank is required in addition for this option).
In order to comply with the latest Payment Card Industry Data Security Standard, we strongly advise using a payment gateway solution. |
Credit Card Fraud Liability
