Payment systems
How to choose the best payment system for Internet acquiring? For sure, when you run the Internet project, you face this question. In fact, every business has many requirements for the period of withdrawal of funds received, the maximum size of the commission, the need for simplicity and ease of integration for customers. In addition, the Internet business may have different level of risk and is often conducted by the offshore legal entities, which, of course, requires non-standard solutions. Next, we review the main existing today electronic payment systems of the Internet, and more specifically their types, the advantages and disadvantages of each.
ELECTRONIC PAYMENT SYSTEMS OF THE INTERNET
There are four main types of payment systems for the site:1. Payment systems VISA and MasterCard provided by the Banks and Payment Processors
2. Systems of electronic wallets such as QIWI, WebMoney, Yandex-money, etc.
3. Payment intermediaries accumulating funds such as PayPal or Moneybookers
4. Universal systems and “aggregators” providing HIGHRISK payment solutions
Send application form to all payments systems at once
At the time, we connect to all payment systems presented here and below.
1.1. Card payment system for websites
Their typical representatives are not the VISA and MasterCard themselves, but always a combination of two entities, namely the bank and the processor. Both of these organizations are always present and are essential elements of the procedure of clearing card payments. The bank opening a so-called “merchant account” is a repository for received funds and is responsible for their “purity”. And a coordinator of the complex process of checking card data and the guarantor of transactionality is the processor (Payment Processing Clearinghouse). In this case, when the site and payment system are integrated Merchant (company) can work with many other banks and processors. The only condition is the existence of the agreements and technical integration between process participants.When you connect your site to the bankcard payment system, the question arises where to go, to bank or to processor? The choice is definitely in favor of the processor. There are several reasons. First, in the bunch “bank + processor” only banks are responsible persons for card and inter-bank regulators, and it is so much harder to negotiate with the bank. Plus, as a rule, banks specialize only in certain types of businesses (mostly “white” and “lowrisk”) and do not work with Internet companies, that do not fall under their pattern. Moreover their “patterns” cannot be determined in advance if the bank is appropriate or not. Processors, on the contrary, are not related by stringent requirements and the fear of losing the license and they are therefore absolutely “flexible”. In addition, IT-working professionals, who are close to all of your questions, are working with them, unlike banks, and they are always willing to tell you what to do and which way would be the best to do that.
Given the above and the fact that processors are working with multiple banks, it is simple to understand that it is easier to have a deal with the processor which are almost certainly be able to work with you, then to send questionnaires to lots of banks and await that one of them will agree to your scheme of business and then to hope it works with the appropriate processor.
2. Electronic wallet systems
With electronic currencies everything far easier than with bank cards. Since these organizations combine both a payment service provider and the “central bank” for themselves, and the supervisor, and the legislator for their own money, it is easy to guess that in these conditions the bureaucratic component of connection is minimal. Of course, the domestic laws towards the globe slightly increased requirements for such organizations, but in general, the connection to the “electronic wallets systems” are easiest to integrate solutions. Perhaps, the only drawback of these systems is their low popularity, with the exception, perhaps, of the group of buyers, as technically advanced youth, which, of course, has a negative impact on the ability to use any electronic wallet as the main payment system for the site.
3. Payment intermediaries
A special group of organizations, which are on the one hand electronic wallets, and on the other, working with the currencies of the real world, are the payment intermediaries. If you need a payment system of plastic cards, but it is impossible to pass the procedure of “compliance” not in one of the banks, or you just want to save time, you can try to apply to systems like PayPal or Moneybookers which, acting on your behalf, will accept on their account the money of the customers, and then transfer them to you. The most interesting is that the commission of such an organization may even be equivalent to the normal card processing. Unfortunately, in these systems, there is always a demand for each end customer on passage of the registration procedure, which greatly complicates the process of purchase. Last point in the context of Internet commerce can be a fatal flaw.
4. Universal payment systems or “aggregators”
Some Processing Compnaies, working with VISA and MasterCard, tend to be universal payment systems. To do this, they integrate with a variety of representatives of all previous groups. Due to the fact that they are the official distributors of all of their counterparties, these “aggregators” provide their clients with a “one stop shop” service for connecting the right set of payment solutions of “electronic wallets” and “payment intermediaries”.Typically, the client, when applying to this aggregator, needs only to fill out one form and then the aggregator takes over the whole process of working with other systems. At the same time, rates and other terms and conditions for each Merchant are always the same as when working directly with the service providers. The identity of the conditions with the final providers is a compulsory condition for activity. One example of such an aggregator is our universal payment system Ecommerce Payments.
Dear Customers, as you can see, we have done everything to be your most convenient and profitable way of payment. We have our own clearinghouse, cooperating with many banks, and we have organized a “one stop shop system” for connection of third-party providers. In addition, because our motto is “Everything for the Internet business”, we also provide services for legal and tax optimization, as well as various consultations. This makes us the most versatile online payment system in existence. We are always glad to help you, please, contact us.
