Online payment methods?
Discussion
I have searched the archives for info on this, but it all seems a year or too out of date.
We are looking to take payments through the site soon, and i've been looking into the options.
Worldpay is what i've been told to go for so far £30 a month, 2% CC, 20p debit cards.... , but reading the archives i see complaints of their funds process times (4-6weeks)
I've just looked up HSBC, as they sound like they transfer in 3 days, but havent had the charges yet.
What worries me most is the chargeback problem, as we sell very expensive individual items & fraudsters will no doubt target us. Even if we assess each order, the refunding of the card with charges could cost us a fortune!
I noticed someone was talking of 'pre auth' systems, where you are able to authorise the card once happy?
Are these avaliable with hsbc/worldpay? Would that be an extra which must be paid for??
Any advice much appreciated
We are looking to take payments through the site soon, and i've been looking into the options.
Worldpay is what i've been told to go for so far £30 a month, 2% CC, 20p debit cards.... , but reading the archives i see complaints of their funds process times (4-6weeks)
I've just looked up HSBC, as they sound like they transfer in 3 days, but havent had the charges yet.
What worries me most is the chargeback problem, as we sell very expensive individual items & fraudsters will no doubt target us. Even if we assess each order, the refunding of the card with charges could cost us a fortune!
I noticed someone was talking of 'pre auth' systems, where you are able to authorise the card once happy?
Are these avaliable with hsbc/worldpay? Would that be an extra which must be paid for??
Any advice much appreciated
Chargebacks can and do happen, it really depends on the sort of items you are selling but whether it's worldpay, HSBC or paypal you will be at risk.
You should be able to make use of the "Verified by Visa" or Mastercard "Securecode" schemes. These encourage the customer to set up a password which is used whenever they use their card online. The benefit of this is that a) you know only the cardholder will be able to pay, and not someone who has fraudulently obtained their details and b) the bank will underwite any losses in the event of chargebacks (otherwise YOU are the one who will be charged).
If you're providing tangible goods then you have some protection in that the goods will have to be physically delivered, so you can crossreference against provided card details and if necessary make a manual call to the bank or your own investigations (electoral check etc) to verify a customer's identity.
With HSBC and Barclays, the two that I know of, you obtain authorisation on the card for the amount, then "settle" all outstanding transactions at a fixed time each day. This means you could do the verification between authorisation and settlement, and cancel any orders that you are not comfortable with. I don't think there's a real issue with you refunding an order post-settlement, though, if stuff doesn't check out after it's settled. We were never charged for it in any case (HSBC/Securetrading)
You should be able to make use of the "Verified by Visa" or Mastercard "Securecode" schemes. These encourage the customer to set up a password which is used whenever they use their card online. The benefit of this is that a) you know only the cardholder will be able to pay, and not someone who has fraudulently obtained their details and b) the bank will underwite any losses in the event of chargebacks (otherwise YOU are the one who will be charged).
If you're providing tangible goods then you have some protection in that the goods will have to be physically delivered, so you can crossreference against provided card details and if necessary make a manual call to the bank or your own investigations (electoral check etc) to verify a customer's identity.
With HSBC and Barclays, the two that I know of, you obtain authorisation on the card for the amount, then "settle" all outstanding transactions at a fixed time each day. This means you could do the verification between authorisation and settlement, and cancel any orders that you are not comfortable with. I don't think there's a real issue with you refunding an order post-settlement, though, if stuff doesn't check out after it's settled. We were never charged for it in any case (HSBC/Securetrading)
Edited by john_p on Tuesday 5th September 14:30
I can't recommend a payment provider but www.electronic-payments.co.uk has a comparison tool to show which is the most cost effective for your given situation.
Phil
Phil
Worldpay offers pre-authorisation which does sound like a sensible idea if you'll regularly be the target of potential fraudsters. Otherwise as you say, you'll still pay all the fees but then have to refund the cards.
I've got my Worldpay payment down to two weeks now. That's workable and it's a good system although not the cheapest.
I've got my Worldpay payment down to two weeks now. That's workable and it's a good system although not the cheapest.
Edited by PetrolTed on Wednesday 6th September 14:04
I believe most places like WorldPay also sell "fraud insurance" - pretty self-explanatory, you pay them a premium and if someone fraudulently uses a card for the payment then you are insured against losses for it.
Not sure how much is typically charged for such a service though...
Rob.
Not sure how much is typically charged for such a service though...
Rob.
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