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  • Payment gateway for ecommerce based website to accept credit cards online and bank transfer by ECS

    Posted on April 29th, 2009 Dimakh No comments

    A secure and safe payment gateway used for credit card processing is necessary for any e-commerce based website which allows payment transaction to buy and sell goods, products or services online. “Electronic commerce” means, The transaction of buying and selling of good and services through digital medium.

    E-commerce websites should offer their customers, a payment option that is safe, convenient and widely accepted. The choice of establishing the right online payment system depends upon the company, its products or services and its customers. Many payment gateway service providers sell different packages of payment processing services to web site owners that allow them to accept different types of payments.

    The payment modes that are offered by different e-commerce based websites are payments using credit cards , credit card fax back service, Telegraphic transfers, Netbanking using ECS , cheque/DD for India, Direct bank transfer, paymate within India, paypal across the world, cash cards etc. But by far its best to go in with a reliable payment gateway service provider called as credit card merchant service providers who offer different options in a single window and allow safe and secure transactions. The offer processing for visa credit cards, master credit cards, American Express and all other credit card banking services.

    Before you select a payment gateway first try to get details for all the costs associated with the payment gateway service provider. Each payment gateway offers variable costs and transactional charges.

    The different costs associated with Internet merchant account are :

    Up Front Application Fees
    Many Internet Merchant Accounts will require an up front application fee. This fee, supposedly, is to cover their costs for processing your application. But with gorwing competition, most of the companies now waive off this front application fee.

    On Going Fixed Fee
    This is a fixed monthly fee that you have to pay to the service providers irrespective of any transactions that you do over your website. Many a times a flat fee of $25 is charged on your account.

    Fixed Transaction fee
    Usually between $0.20 and $0.45, the fixed transaction fee is the fixed fee portion of each sale. The fixed transaction fee is the same for every transaction. Whether you get a $1 sale or a $100 sale, the transaction fee will be the same.

    Variable Transaction Fee
    The variable transaction fee is the amount that you pay to the merchant for every transaction that happens on your website. This transaction fee may vary between 2% to 5%. The percentage is dependent on the monthly volume that you do through your website.

    Termination Fees
    A termination fee is applicable if you discontinue the contract before the stipulated time. The minimum contract period may vary from one year to three years.

    Miscellaneous Fees
    A charge back fee may be applicable if a customer requests for a refund and if he wants his credit card to be credited. The merchant will charge a separate fee for this.

    If you are developing an ecommerce based website and want to activate a online payment option for your website then you must be having questions like :-
    Which is the best payment gateway for me? or
    how to integrate credit card processing on my website or
    what are the online payment options , can I do a bank transfer or Cash On Delivery – COD.
    What are the online payment gateway options for India and can we have multiple currency options on my website. Can I use a debit card to make online payment or can I accept debit cards online.

    Please read the next blog posting to know more about using payment gateway to accept payments online in India and world wide. I will also cover comparison of different payment gateway vendors. You can also  send an email to sales@dimakhconsultants.com for more details.

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