Interface - This refers to the technology and code that is used to integrate your website with the services of the payment processing supplier (who in turn interfaces with the banking systems). Ideally, you want a supplier that offers a full range of interfaces from a simple payment page through to XMLRPC VPN.
Set-up Costs - Most Payment Service Providers (PSPs) charge a set-up fee for new accounts. These can range from £50 (PayPoint.net) to £250 (excluding VAT).
Transaction Charges - This is the cost per transaction processed, which is in addition to set-up charges and monthly service charges. Some PSPs charge a percentage of the transaction with a minimum charge. This inevitably ends up a more expensive option as the minimum cost is incurred on low value transactions, and the percentage on all others. Some PSPs charge for 'Blocks' of transactions. These can appear to be at a lower cost per transaction but if you don't use the entire block you'll end up paying more in most instances. With PayPoint.net you only pay for what you use.
Monthly Service Charges - Most PSPs charge a monthly standing charge that can range from £10 through to many thousands. Monthly service charges and transactional charges are always linked. In most instances, the higher the volume, the lower the transactional rate and the higher the service charge.
Service Availability - This is a key consideration for all online merchants as you will not be able to take payments when the payment service is unavailable. All systems are periodically taken offline for development and upgrades: the key point for comparison is what is the guaranteed service level and what is the actual performance. For PayPoint.net, the guaranteed availability standard is 99.5% per month, and the achievement is currently 99.99% (rolling for the last 12 months).
Virtual Terminal - This is a terminal interface that you, as a merchant, can access via secure log-in. The virtual terminal enables you to process mail and telephone orders and make refunds. Most PSPs will charge extra for virtual terminals. With PayPoint.net it is part of the overall package and is included in the monthly service charge.
Chargeback - These refer to transactions that, whilst being made on a valid credit card, are disputed by the cardholder. Unless you have gained secure verification from the cardholder, the transaction value will be debited from your merchant account by the acquiring bank. Before choosing your PSP make sure they offer all the currently available anti-fraud screening choices, such as CV2, AVS and 3DSecure (also known as verified by Visa and Mastercard Securecode).
Accredited Standards - Finally, it is always advisable to choose suppliers that have achieved internationally recognised standards of security and that meet industry-wide quality accreditation standards. PayPoint.net is the only independent PSP to achieve the coveted ISO 9001 quality standard.
The Payment Service Provider Checklist
- What security verification and anti-fraud measures are available?
- What interfaces are available and are they all Secure Socket Layer (SSL) based?
- What are the set-up, monthly service and transactional charges?
- What is the cost of a Virtual Terminal?
- What is the service availability performance for the past 12 months?
- How long does it take for the funds to be cleared into your merchant account?
- What security and quality standards are they accredited with?
- What payment gateway integration options do they offer and are these compatible with your needs (or those of your web developer)?
