If you have a product to sell and you want to sell it to people via the Internet, you will need a website to advertise to customers and a way to accept payments for your products. Obviously, you will need a domain name, web hosting and a website. You will want search engines to list your site. But how can you accept payments online?
Your website should include a shopping cart script. If your web host does not allow such scripts, you can have remotely hosted shopping carts or PayPal add to cart buttons. There are free and paid shopping cart scripts that can work on different web hosts. Be sure that you select a script that works on your web host server. Customizable carts are much nicer and if you sell many products or need to track quantities, a database is recommended.
Echo is a great third-party processor for U.S. businesses to accept international payments. The payer's bank will convert the currency to U.S. dollars. PayPal charges more than Echo. And PayPal charges 3.2 % for credit cards AND checks in the same country and more for out of country. Some people do not like PayPal so providing other options is better for you and your customers. When choosing a third-party processor, check for hidden fees, if they work with your bank or theirs, from where they accept online payments. Verisign is expensive, but a trusted and recognized name.
PowWeb web hosting's SSL certificate is for the PowWeb server, so everyone shares it. The certificate from VeriSign is for VeriSign and the payment processing is handled on VeriSign's server, just as PayPal handles payments on its server. VeriSign charges customers alot of money to put the logo on the site saying they use VeriSign. You can say that in text to avoid paying the extra dollars, but will people see it? I recommend mentioning the forms of payment in FAQ and Checkout.
SSL or Secure Socket Layer is a term associated with secure servers. But if the form request is sent to email, it is not secure, because email cannot be secure. So, instead of sending form requests by email, they can be saved in a text file or database to be retrieved by the site owner. This info should require a username and password to access it. Remotely hosted scripts and payments are usually secure.
The shopping cart is secure in the cgi-bin and payments handled on another server are usually secure. If you use Echo payment processing on your own server, instead of paying extra to use the processing on their server, you may want to use the secure server link. The visitors will see the PowWeb SSL certificate and skip right by it.
Existing businesses have a business license. If you have not yet done so, go to your state or country's website for to apply for a sales tax number. In PA, I paid $52 to file for a fictitious name Power Pages Web Design. If your business name includes your last name, you may not have to pay for the name.
My merchant account with my local bank issued checks that say Yvette Kuhns DBA Power Pages Web Design. DBA means doing business as. I am sole proprietor and any of my employees are independent contractors. It is affordable to set up an account and there should not be any "hidden" fees. I wouldn't even give you quotes since I am in another state and I applied a few years ago. The information will no longer be accurate.
My checking account is free, I pay $5 a month to accept credit cards directly, $5 extra charged by American Express who charges the highest percent for credit cards (I am thinking of dropping them), additional fees as credit cards are processed (percent plus transaction fee), no batch fees (through my bank). I paid $225 for the Tranz 330 where I can type in credit card numbers or swipe the cards in person. These are processed through my phone line. Good for those who do not want to process payments via the Internet.
This article include highlights from posts on the PowWeb forum. I was asked to include my posts in an article, so here it is!
Update February 2009: PayPal is only 1.9% to 2.9% plus 30 cents per transaction. The PayPal shopping cart can track inventory with a required customer login. It costs more to accept credit cards directly. The cost to register a business name has also increased since the article was written. The article still helps people understand what steps must be taken when starting an online business.
Yvette Kuhns, Power Pages Web Design, April 28, 2004
NOTE: My local bank was partnered with Nova. When Nova wanted to go global, they changed their name to Elavon. They also increased their monthly fees and percentages. I cancelled their services in 2007 or 2008 because the cost was too high. PayPal allows people to pay without requiring them to have a PayPal account. But PayPal isn't available in all countries.
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