Accepting E-Commerce Payments Online in the PhilippinesJanette Toral
There are so many ways on how entrepreneurs can accept payments online. This can be in the form of cash, credit card, remittance services, mobile payments, among others. The mechanics are becoming much more friendly and there’s certainly one that can suit your needs.
Here are some of the players in this industry to date.
CASH or Non-Credit Card payments
This service allows you to receive money from BancNet members who have enabled themselves for Internet banking payments. You need to show that your online business model has the ability to generate no less than two hundred fifty thousand pesos (P250,000) worth of revenues per month. The network has a process in place in reviewing the risk and potential of every aspiring merchant who would like to accept online payment.
It clearly indicated as well what types of transactions it will not allow that includes those misrepresenting brands or logos, products or services that promises get-rich-quick schemes, among others.
BancNet is an online payment option for Cebu Pacific, Philippine Airlines, and Victory Liner tickets using ATM cards.
It is also a payment option for mobile ordering of Ayala Cinema tickets, McDonald’s and Max’s products. Some schools have also used this for online payment of tuition.
For government services, the following can be paid through BancNet:
1. Online remittance of SSS (Social Security System) contributions and loan repayments.
2. Online filing and payment of taxes. BancNet is the only ATM consortium accredited by the Bureau of International Revenue for its Electronic Filing and Payment System (EFPS).
3. Enhanced Business Name and Registration System of the Department of Trade and Industry.
DragonPay allows merchants to accept payments through online banking ( including BancNet members who allows interbank fund transfer), over the counter with banks and non-banks (LBC branches, SM Payment Counters, Robinsons Department Stores (RDS), and M.Lhuillier branches nationwide). It has fixed fee for every transaction ranging from 10 to 20 pesos.
For online banking, BancNet charges a fee of P25.00 for every transaction. Some banks also require a Transaction Password, which is different from an account holder’s Login Password, in order to perform a financial transaction. This includes Unionbank, Chinabank, and RCBC.
However, for merchants selling items at 200 pesos and below, they are encouraged to avail of its micropayment fee schedule for a fixed transaction fee of 5%. Set-up fee of P28,000 applies.
Offers online payment acceptance for BancNet, MegaLink, BPI, GCash Online. Transaction settlement is done weekly.
Philippine Seven Corporation (7 Eleven) also provides an online payment solution for merchants where customers can go a 7 Eleven outlet to complete a transaction payment.
If you are not ready yet to become a direct merchant, Cashsense provides an alternative to receive payments through the 7-Connect system.
Accept online payments from the rural areas where commercial banking facilities are not accessible. Let the rural bank function as the payment point for consumers.
Tagcash.com is a payment platform for online or offline payments. It allows users to deposit funds to fund their wallet using 7 11, online bank or over the counter at banks and transfer to merchants. The merchant fee is a flat 3% for any amount, or 25 pesos per transaction, no setup fee.
Paynamics Express is a service that allows businesses to collect cash-based payments from buyers through their website, social media, email, among others. There is no sign-up fee. Fees are at 3.5% or 25 pesos – whichever is higher.
Cash and Credit card
Allows merchants to accept various form of payments such as credit card, BancNet, G-Cash, Paypal, DragonPay online banking and over the counter. It offers Direct Link Online as an integrated, secure, one stop payment switch. It also has virtual terminal, email payment, virtual link, recurring payment, tokenization, among other services for merchants.
Offers credit card, cash (BancNet, remittance centers, Globe GCash, Smart Money), Paypal, regional, China payments, among others in its system. Packages are dependent on what payment options and features you want to be activated.
A local multi-payment platform that offers web payment, data vault for secure card storage, e-mail billing, fraud prevention, subscription, among others. It offers credit card, cash, mobile, and global payment options.
A payment platform solution that can be used for mobile point of sale system and online. It also has its own PayMaya card that users can load to process payments online. It offers credit card, debit card, and ATM payment options.
A sister company of Lazada, HelloPay offers merchants payment options from credit card, over the counter, credit and debit card payment options. With the recent entry of Alibaba investment to Lazada, HelloPay is expected to go through changes as well. We won’t be surprised of the entity will likely carry AliPay in the Philippines in the near future.
International Credit card
- CCNow (http://www.ccnow.com)
- 2CheckOut (http://www.2checkout.com)
- Paypal for Business (http://paypal.com)
For overseas buyers who don’t have a credit card or sufficient credit limit, another option is to allow them to pay through a remittance service. Examples are:
- MoneyGram (http://www.moneygram.com)
- Xoom (http://www.xoom.com)
- Cashsense (http://philpay.cashsense.com/)
- Remitly (https://www.remitly.com)
- ML ePay (https://www.mlepay.com/)
Courier services with payment collection
Checkmeout allows any seller to accept credit card, over the counter, and cash on delivery payments from buyers. A person signs-up for the service to generate links for the products being marketed and share it online such as website, social media, email, among other options.
Some of the local courier service providers offer payment collection as part of their service. Although the information is not directly published on their site on the rates and scope of this service. Best to inquire directly on the arrangement that can be made.
Accepting payments online
There are so many ways on how entrepreneurs can accept payments online. The mechanics are becoming friendly and there’s certainly one that can suit your needs.
Usually, the Internet Payment Service Provider (IPSP) accredits merchant to accept online payment.
To be able to accept payment, a website visitor visits a website such as http://www.digitalfilipino.com and access a product page. If interested, the visitor clicks on the order or buy button. Afterwards, the order gets redirected to the payment gateway and/or acquirer website to process it for approval. Also check with the credit card issuer for sufficient funds and, if approved, debit the respective credit card account.
Becoming an e-commerce merchant
There are a few steps that one has to take in becoming an e-commerce merchant. This can vary from very lenient to very strict. Such as:
- Business potential. Your business model, past and projected sales are taken into consideration.
- Trading and credit history. Some check the credit and trading history of the people behind the entity applying for a merchant account.
- Surety bond or deposit required. Some require merchants to post a fixed amount that is on hold for the duration of the relationship. This can also be used to cover for charge back or refunds, if necessary.
Depending on the number of products you’re selling, think twice whether you wanted to sell your products directly or go through other channels.
If you’re still starting, you can join existing online sites and offer them commissions to sell your products. This way, you don’t have to worry about the infrastructure immediately. This can be a good alternative until you’re able to set up your own and you’re satisfied with the response of the market.
Big or small – there is a payment solution for you
This payment acceptance aspect has to be taken seriously. If your business will be dependent on purchases made online, having this unresolved can break your business. The good news is there are now many payment providers available ready to accommodate individuals who just wants to earn a sideline up to those who intends to generate high sales volume on a daily basis.
The potential is there. Conduct due diligence and continuous research to find the right payment gateway that suit your needs.
There are a lot of considerations that you have to take once you start going to a full online business. From web site hosting, affiliate/consumer marketing, advertising, payment, fulfillment, legal responsibilities/liabilities. But the choices are very much available and friendly unlike before.
Learn about E-Commerce for free by joining the DigitalFilipino E-Commerce Boot Camp online.