There are many ways to complete money transactions online. If you already have an established Web site that your clients know you will probably want to keep it and add an e-commerce solution into it. If you do not have an e-commerce Web site you may consider e-commerce solutions offered by major online sites such as Yahoo, Amazon, and Google with little to no Web design experience needed. (Enter "commerce solutions" in the search box.) Online auction sites such as eBay, Yahoo, Google and MSN might also offer additional avenues for your business. Consider hiring and or consulting with an experienced Web designer or firm to set this up for you. Their experience can often save you time, money, and unnecessary aggravation.
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E-commerce software often requires setting up a merchant account as well as establishing a payment gateway provider. A merchant account is a specialized bank account setup by a bank that allows you to accept credit cards. A payment gateway charges your customers' credit cards via the Internet and sends the funds to your merchant account. The payment gateway acts as the bridge between the merchant's Web site and the financial institutions that process transactions. Payment data is collected online from the shopper and submitted to the gateway for real-time authorization.
Several companies such as 2CheckOut.com, Authorize.Net, Cybersource.com, andVerisign.com offer various credit card transaction packages. A great start would be to try your local bank. Many banks now partner with E-commerce payment gateway solutions and can help you in most cases.
E-commerce Considerations
- Per Cyber Source Corporation, online fraudsters took $3 billion out of e-commerce in 2006. Most companies provide at least basic forms of fraud protection.
- Be sure to take into account all your costs such as monthly e-commerce fees, packaging costs, shipping costs, time, etc.
- For internet based orders and shipping you should check with your state's board of equalization office to determine the appropriate sales tax. Our Small Business Tax Center provides valuable links to tax information from the IRS.
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Cash payments are less advanced but easier to set up. Funds are transferred from the buyer's bank account or credit card to the seller's account. This is similar to writing someone a check but much more secure and easier to track. Since no taxes or shipping costs are required, there is no need for shopping carts to manage the information.
Below is a list of some of the more popular and well-known forms of "cash payment" systems.
- PayPal - Owned by Ebay
- Google Checkout
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