E-commerce Guide Payment Processing By Neto E-commerce Solutions Pty Ltd Designing Your Online Store Copyright Neto E-commerce Solutions 2012 www.neto.com.au Page 1
Processing Payments If you are running an e-commerce shop, you need to be able to accept payments. There are four ways you can do this: Obtain an online merchant facility and utilize a payment gateway to process credit cards (Visa, Master Card, Amex or Diners) in real time. Setup a PayPal account and direct customers through the PayPal website. Setup a BPAY facility and issue BPAY compliant invoices. Offer offline payment methods such as cash, cheque or direct bank deposit. You can offer a combination of or all or any of these options to your customers. Online Merchant Facilities Even if you already have a merchant facility for EFTPOS and credit card transactions, you will need a separate one for processing online transactions. An online merchant facility usually attracts higher fees than an EFTPOS facility, as the risk of card not present transactions is higher for the issuing bank. Applying For a Merchant Facility When you apply for a merchant facility with your bank or financial institution, you may be asked to complete a Payment Card Industry (PCI) Compliance Self Assessment Questionnaire (SAQ), as well as providing proof that your service providers are PCI compliant. In such cases you can request a copy of Neto's Attestation of Compliance and latest PCI compliant scan reports from its authorised scanning vendor, Comodo. In addition to these documents, you will also need to complete a PCI Compliance Self Assessment Questionnaire (SAQ) of your own. SAQ A is the correct SAQ for Neto merchants to complete, provided they are hosted with Neto and are using the latest version of the Neto E-commerce Suite. Prior to submitting your merchant application you will also need to ensure that you have a live or testing website setup with the following pages active: About Us explains what your company is all about, where it is located and what products it sells. Privacy & Security Policy explains how you manage your customer s personal information including how you secure this information. Page 2
Terms and Conditions explains the terms and conditions users of your website must agree to if they wish to use your website. Contact Details contains your physical and postal address as well as your phone number(s) Shipping Rates & Times explains your shipping rates and estimated delivery times. Returns Policy explains what your returns policy is and the steps customers should take to return items. You will also need to clearly display your business name, ABN, address and the products and services sold on your website. The bank will want to view the above prior to approving your facility. Obtaining a Merchant Facility When choosing a bank to obtain your merchant facility from, you may also need to choose a payment gateway (a 3rd party that acts as the connector between your bank and website). Some merchant facilities such as NAB transact and ANZ egate include their own payment gateways, negating the need for you to utilize a 3rd party payment gateway. Neto integrates with and recommends the following payment gateways: eway (www.eway.com.au) Securepay (www.securepay.com.au) Camtech (www.camtech.com.au) Securepay Tech (www.securepaytech.com) All of these gateways service most of the major banks in Australia. Benefits of Payment Gateways Security (All of the above gateways are PCI Data Security Standard (DSS) compliant) Ability to store credit cards for recurring or triggered payments (Ideal for wholesale or subscription model businesses) Inbuilt fraud prevention tools Reconciliation reports If you do not want to use a 3rd Party Payment Gateway we suggest: NAB and NAB Transact ANZ and ANZ egate Page 3
Once You Have Been Approved By Your Bank Merchant facilities can take up to 2 weeks to be approved. Once your bank has approved your application, you will need to forward the merchant ID and terminal ID you receive from your bank to your chosen payment gateway provider so that they can complete setup. This process usually takes about 24 hours. Once the gateway has completed setup, they will email you with your live transaction ID and password. You can enter these directly into your Neto administration control panel to activate your credit card processing facility. If you are not utilizing a 3rd party gateway (eg: NAB Transact or ANZ egate), these institutions will provide you with transaction IDs and passwords directly. Fraud Prevention One of the risks associated with selling online is credit card fraud. Merchants are responsible for all credit card fraud conducted through their website. In most cases, banks can apply charge back fees and debit fraud money from your account without warning. To help reduce credit card fraud you should install and configure Maxmind Min Fraud (http://www.maxmind.com) fraud prevention software. Simply enter your Maxmind license key into your Neto administration control panel to activate this service. For a cost of just a few cents per transaction, Maxmind is an excellent fraud prevention tool that should be utilized by all merchants. Things to be suspicious of when it comes to credit card orders: overseas orders from new customers postal box address for shipping of goods a billing address that is different from the shipping address free web-based email addresses (eg: hotmail.com) orders from African nations and Eastern Europe orders comprising large numbers of duplicate items orders for high value branded goods If you are still unsure, call your merchant facility provider to check that the credit card used to process the order has not been reported as stolen since the order was placed. If time allows, wait a day or two before shipping the goods. There is a good chance that the credit card owner will notice fraudulent transactions and report their card as stolen. Page 4
PayPal PayPal is the fastest growing online payment method, and is a secure payment option for both merchants and consumers. There are no setup fees and you can start offering PayPal instantly. Neto integrates with PayPal Express and PayPal Standard, the two most popular PayPal payment methods. PayPal Benefits Accept Visa, MasterCard and PayPal payments. Does not require an Online Merchant facility. PayPal funds can be transferred directly from PayPal to your business bank account Strong fraud protection and security Market acceptance can lead to higher conversion rates PayPal Draw Backs Higher fees than your own online merchant facility Money can take up to 3 days to appear in your bank account after withdrawing from your PayPal account If you business is partly or fully owned by a trust you cannot offer PayPal as a payment option. Check with your accountant prior to offering PayPal on your website. BPAY BPAY is a convenient, fast and easy way for your customers to pay you. BPAY is an electronic payment service offered by Australia s leading financial institutions as a core feature of Internet and phone banking. BPAY gives customers the option of paying their invoices at any time, day or night, on any day of the year, saving them time and reducing the hassle of paying invoices. BPAY payments can be made directly from a customer s bank account or through a credit card. Neto supports BPAY and all BPAY check digit algorithms. How to Setup a BPAY Facility To offer BPAY on your website you will first need to obtain a BPAY biller code. You can obtain a BPAY biller code from your bank. Setup fees and transaction fees apply to BPAY payments but are traditionally much lower than merchant facility charges. Page 5
Once you have received your BPAY biller code you can enter this into your Neto administration control panel to start accepting BPAY payments. BPAY is an excellent alternative to accepting direct bank deposit as each transaction has a unique ID making the matching and reconciliation of payments extremely easy when compared to direct bank deposit. Page 6