E-commerce

5. How Do I Receive Payments?

Payment by credit card is now firmly established as the usual way to complete internet consumer sales.

5.1 You can accept credit and debit card payments in your internet shop. You can also allow your customers to send you money using online cash transfer services like PayPal.

• You will need to apply for 'merchant status' with your bank or use a specialist company that can process online credit card payments as a bureau service. Turnkey packages and shopping-cart software often include payment processing services.
• Customers may be unwilling to send card details unless they are sure your website is secure. You should set up a secure area for payment processing and advertise your security credentials.

5.2 You need to give internet buyers the option to phone through their credit card details.

• It may be advisable to offer this option alongside other payment methods, to capture customers who are unwilling to enter their card details online.

5.3 Business-to-business transactions usually take place on the basis of a monthly invoice for payment in 30 days, or a customer account.

• Carry out your normal credit checking procedures before setting up an account for a new customer.
• If appropriate, offer discounts to customers who place orders and make payments via the internet. This automation reduces your costs.
• You can use online invoicing services to manage customer accounts and payments.