Accepting Online Payments

Transcription

1 Accepting Online Payments Today s necessity for tomorrows growth. Joseph Iuso CEO UseMyBank Services, Inc Feb. 21/05

2 Today s Agenda Introduction Necessities for an effective website Overview of current payment options Overview of payment options Review of Payment Option Recommendations

3 Introduction Joseph Iuso CEO, UseMyBank Services Inc. 18 years industry knowledge Was there in 1993 when the internet first started Insider knowledge of banking systems and how they work. The world's first payment service to use the existing Online Banking Payment Systems

4 Introduction What we are not talking about (70-90%) - Credit Cards May have to wait 1 year May have to use a 3 rd party merchant service provider (Internet Secure, Moneris, Global Payment Systems, PSI Gate, ClickAndBuy, PayPal) What we are talking about (10-30%) Alternative Payment Options echecks (EFT Direct Debit in Canada) ewallets, Store-Value-Cards, and Internet only Accounts 900 Pay services Money Transfer Service Mix and Match Services Online Payment Facilitation Services

5 Necessities For an Effective Website What you should have in place on your website. Policies Terms & Conditions, Refunding, Guarantee Fraud/Privacy/Security, SSL Certificates How long has your website be around? Produces HALO Effect Do users see your company as a legit business? Do they trust you? Content Dynamic or Static? Are you feeding search engines? Meta Tags What is your niche? Management Support aspects, Detail Contact Information Who is responsible?

6 Overview of Payment Options Payment Options Most use HTTPS form Post (XML starting) with HTTPS Post back to site API available in some cases for more sophisticated users Receipts are issued to Buyer and Seller Some have certification programs No silver bullet yet and not in the foreseeable future Web interface for Transaction listings/downloads used as the primary mode of communications

7 echecks (EFT Direct Debit in Canada) What is it? These systems employ CPA and ACH type transfers CPA Canadian Payments Association ACH American Clearing House CPA, ACH government and bank run associations Same thing as a paper cheque, but online Costs are fixed (typically $ $1.00 per transaction) Who is providing echeques/checks Services? most Fis/Banks, ACHcommerce, PayPal Why use these services? Simple, Safe, Secure Easily transferred between banks Drawbacks Payments not guaranteed 24 to 72 hour funds transfer period Subject to NSF (Non Sufficient Funds) NOTE: If the funds are not available from the buyer who wrote the echeck, you will be left a chargeback/nsf, that is if you already shipped the product

8 ewallets, Store Value Cards, and Internet Only Accounts What is it? These systems use an Internet Bank Account Act just like a local bank Deposit / Withdrawal Cost are variable from fixed to percentage Who is providing ewallet Services? Paypal, hyperwallet, NetTeller, VisaBuxx, FundTech, ACHCommerce, Visa Buxx Why use these services? Payment of goods and/or services in REAL-TIME ZERO Charge backs, ZERO Fraud, Fast, Simple Drawbacks Buyer and Seller must be registered to use selected payment service Buyer must have money in holding account No noticeable increase in sales

9 900 Pay Services What is it? Use traditional service by telephone companies Payment charged through phone bill Costs are fixed Who is providing 900 Services? Navaho Networks, most Telco s (Bell, Telus, etc.) Why use these Services? Excellent for niche markets Subscription service Fixed cost products or service Real-Time Drawbacks Large potential for Chargeback's High risk of Fraud Buyers that still use dial-up have to disconnect from the internet to make the call Fixed pricing $20, $30, $50

10 Money Transfer Service What is it? Use existing accounts to send money to and from bank accounts Costs are fixed Who is providing this service? Certapay, Hyperwallet Why use these services? Safe, Secure, ZERO Fraud Similar to PayPal, NetTeller, etc. Near Real-Time (due to manual intervention) Drawbacks Buyer and Seller must both log on to their financial institution to receive and send payment Geared toward P2P types of payments Hard to integrate with shopping carts Manual input, non-automated

11 Mix and Match Services What is it? Integrated approach Combines all the ups and downs of the aforementioned Bundle of Services Cost are variable from fixed to percentage Who is Providing this Service? Paypal, PSIGate, InternetSecure, Moneris, BeanStream / Hyperwallet, and hundreds of others Why use these Services? Convenience Factor All the work is done for you! Time Savings Drawback s Buyers or Seller must pay a surcharge or service fee Buyers do not see the service value as they must Signup

12 Online Payment Facilitation What is it? New type of service Similar to Interac Debit in the Brick-and-Mortar world Buyers are not forced to go to their banks to manually make a payment Leverage existing Internet Banking Systems and use Aggregation technology Who is providing this service? UseMyBank.com Why use these Services? Fast, Simple, Secure, and in Real-Time No need for Buyer signup Zero Fraud, Zero Chargeback's Drawbacks None!

13 Demographics for Each Service echecks (EFT Direct Debit in Canada) Subscription based ewallets, Store-Value-Cards, and Internet only Accounts Macro to Micro payments 900 Pay services Subscription based Money Transfer Services One off payments here and there Mix and Match Services Vary widely Online Payment Facilitation Services Vary widely

14 Recommendations Experiment with as many payment options as you can Choose the ones the fit your business the best Ask for feedback from your clients, what they like or do not like about you website Research your industry, what are your competitors offering as payment solutions, how are they servicing their clients? Offering one or more of these extra choices (in addition to accepting payment by credit card) could become your SECRET WEAPON, a competitive service advantage that you offer and your competitors don t Corey Rudl -#1 best-selling Internet Marketing course online

15 Questions and Answers?

16 Thank You!