How to Accept Payments on Your Website?

How to Accept Payments?

To accept payments on your website, you need to integrate a payment service (such services are called online acquiring).

You can accept money as an individual, a sole proprietor, or a company.

For individuals, the commission is about 4%, and for companies and entrepreneurs, it's 2%-3%.

To set up payments on your website:

1. Create a fully functional website with information about your product or service.
2. Register an account with a payment service.
3. Submit your site for verification.
4. Sign a contract.
5. Configure the payment system on your site with the integration details provided.

This usually takes a few days.

What Are the Requirements for Websites?

To get your site ready for payment integration, make sure that:

1. All pages are functioning without glitches.
2. Products or services are described in detail.
3. There's a public offer (terms of service).
4. Contacts, company details, and information are provided.
5. Terms of refunds and privacy policy are defined.
6. If delivery is offered, describe the terms.
7. Sometimes, displaying Visa and Mastercard payment system logos is required.

Requirements may vary slightly depending on the payment service chosen.

How to Choose an Online Acquiring Service?

Choosing an online acquiring service depends on several key factors:

1. Commission and Fees: Compare the commissions and fees of different services.
2. Payment Types: Ensure that the chosen service supports all necessary payment methods, including credit cards, Apple Pay, Google Pay.
3. Ease of Integration: Assess how easily the payment service can be integrated with your site. Some services offer API solutions or simple payment widgets that require no additional setup.
4. Connection Time and Conditions: Be prepared that the connection process may take some time for site verification and contract signing.
5. Support Quality: Consider the quality of customer support, as questions or issues may arise during operation.
   

Currency and Tax Aspects

Handling transactions in local currency and understanding tax obligations, including VAT and customs duties, enhances user experience and reduces purchase abandonment.

Careful planning and possibly consultations with specialists are required.

Legal Compliance

Adhering to financial regulations and data protection, including AML and PCI DSS, is crucial to avoid fines and loss of trust.

It's important to keep up with legislation and adapt processes to new requirements.

Understanding Regional Preferences

Knowing your customers' preferred payment systems in different countries is essential.

For example, credit cards and PayPal are popular in the USA and Europe, while Alipay and WeChat Pay are favored in Asia.

Suitable payment methods improve the shopping experience and increase brand trust.

Stripe is the most popular service globally for accepting payments, but Stripe is not available everywhere, nor is it possible to open a PayPal business account everywhere.

Recommendations

1. Research Preferences: Conduct surveys and data analysis on your customers' preferences in different regions.
2. Consultations: Don't hesitate to seek help from legal and tax consultants, especially when dealing with the international market.
3. Adaptation: Be ready to adapt your payment solutions and processes in line with legislative changes.

List of Popular Internet Acquiring Services

1. Square: A payment system geared towards entrepreneurs and small businesses. Square provides tools for accepting card payments through mobile devices and POS systems, as well as business management.
2. Paddle: A cloud platform offering payment solutions for software and digital companies. Paddle integrates payment processing, taxes, subscriptions, and sales management into one service.
3. Fondy: A versatile payment platform that facilitates the acceptance and processing of payments for businesses of all sizes. The platform supports a wide range of payment methods, including credit cards, online banking, e-wallets, and direct bank transfers.
4. Alipay: The leading payment platform in China, owned by the Alibaba Group. Alipay offers secure and convenient online payments for millions of users and is the primary means of transactions within the Alibaba ecosystem.
5. Payeer: A multifunctional electronic wallet supporting both fiat and cryptocurrencies. Payeer allows users to easily exchange, transfer, and make payments internationally. I have an article about how the Payeer payment system works.
   

How to Make a Choice?

Acquiring commissions vary slightly.

For small turnovers, the difference is not significant, but for large turnovers, a personalized tariff might be possible.

When choosing, consider the ease of installation, the ability to transfer funds to any account, and the availability of the payment options you need.

The error rate in transactions is important, especially for international payments.

I've had issues with a payment system where I encountered errors on 665,000 out of 1.7 million hryvnias in turnover.

To reduce this, I even established a company in Estonia and registered a business PayPal account for it.

If you are selling digital products, explore how Patreon or Buy Me a Coffee works.