Trading on the Internet

5. How Do I Receive Payments?

Anxiety about security on the Internet is lessening all the time and payment by credit card is now firmly established as the usual way to complete Internet consumer sales.

5.1 You can accept credit, charge and debit card payments in your Internet shop.

• You will need to apply for 'merchant status' with your current bank or use a specialist company that can process online credit card payments as a bureau service. Your Internet service provider (ISP) may be able to arrange this for you.
• Customers may be unwilling to send card details unless you install a secure area for payment processing. The information can then be processed by your employees or by a specialist Internet agency.

5.2 You can give buyers who place their orders using the Internet the option to phone or fax through their card details or ask for cash on delivery.

• This avoids the expense of setting up special security features.

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. (See Credit control.)
• If appropriate, offer discounts to customers who place orders and make payments using the Internet. This automation reduces your costs.

5.4 Electronic cash allows 'micropayments' to be made over the web for inexpensive products, with very low transaction costs. For example, www.paypal.com.