Using a Payment Service Provider

Having your own SSL server and certificate used to be thought of as being somehow more professional than using a Payment Service Provider, but the recent introduction of the need for PCI-DSS compliance has turned this on it's head.

Rather than processing the payment yourself, and being responsible for the security of your customers card details, you can use a Payment Service Provider (PSP) to handle the card details and authorisation, and leave all the security headaches to them.

At the stage of entering their card details, the customer is automatically transferred to the Payment Service Provider's secure website, where the card and payment details are taken. The payment service provider holds on to the funds for several days before transfering them to your acquiring bank. Payment Service Providers charge a percentage of the transaction value, or a set monthly fee.

These fees vary greatly, and it worth shopping around. Some of the better known ones, such as Worldpay, tend to be quite expensive and not really suitable for start up businesses. It is best to go for a payment service provider that charges a fixed monthly fee, particularly if you are a start-up, as you can budget better.

SecPay charges a fixed fee of £10/month for 100 transactions/month on their Starter 10 package, so if you are likely to do a small number of high-priced transactions, this would be a good option. Other options are available - check their website for details.

Protx offers a fixed price of £20/month with 1000 transactions/quarter and no transaction ofr setup fees. They provide secure online credit card and debit card payment solutions for thousands of online and mail order businesses across the UK and have achieved the highest level of compliance under the Payment Card Industry Data Security Standard

Paypal - Accept credit cards in just minutes

PayPal has been around for quite some time and is very familiar to internet users. PayPal used to be viewed as not a serious option for established businesses, particularly as customers had to open a PayPal account in order to make a payment.

Now however, there is no need for customers to have a PayPal account - they can pay by credit/debit card just like any other payment service provider.

So now PayPal is a quick and easy way for any business to start accepting credit cards online. Opening a merchant account is quick and easy and you can be accepting credit card payments within minutes.