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Ecommerce

Setting up an eCommerce Website

To start accepting online payments from your website you need:

  • A shopfront or online catalogue
  • Access to a Payment Gateway that will securely accept the credit or debit card used to make the payment and ensure the funds are removed from your customer’s account and placed into yours.

Shopfronts

Depending on the software used to run your site an online catalogue such as WooCommerce for WordPress or Virtuemart for Joomla! can be installed. These solutions require your web developer to integrate the shop front with a Payment Gateway.

There are some companies that provide the shopfront and Payment Gateway already integrated such as Shopify and Stripe or Squarespace and Stripe/PayPal. This type of solution does not require a merchant account and generally allows you to be up and running quickly.

Do you need a merchant account?

A merchant account is a special bank account that exists for the purpose of holding funds captured from credit and debit card sales. These funds are transferred to a normal business bank account at the end of each business day. Most Payment Gateway providers will require you to have a merchant account. A merchant account must be applied for and approved by the bank.

An online payment solution which includes a merchant account means:

  • Reduced fees per transaction
  • Same day settlement
  • Bank must approve the account
  • Potential for setup fees.

PayPal, Shopify Payments and Big Commerce are some solutions that do not require you to have a merchant account. If you want to be up and running quickly and are just starting out it makes sense to pay the higher transaction rates associated with these solutions. Once you have a better idea of the volume of transactions then you can look for cheaper solutions.

Credit Card Processing

Payment card industry-data security standards (PCI-DSS) Compliance

Security is a big deal when running an ecommerce website. In the world of hackers you need to ensure that you are PCI-DSS compliant. The most important way you can achieve this is:

  • Do not store credit card information on your website
  • Ensure that your customer’s credit card information is passed through to the Payment Gateway using a Secure Socket Layer (SSL) link
  • Have a privacy policy on your website
  • Ensure that the Payment Gateway is PCI-DSS compliant

Costs Associated with Payment Solution Providers (as at August 2021)

Name Product Fees Notes
PayPal Domestic 2.6% + $0.30 per tran Settles immediately, no merchant account required
PayPal International 3.6% + $0.30 per tran Settles immediately, no merchant account required
PayPal Domestic QR Code Transactions – $10.01 AUD and above 0.90% + $0.10 per tran Settles immediately, no merchant account required
PayPal International QR Code Transactions – $10.01 AUD and above 1.90% + $0.10 per tran Settles immediately, no merchant account required
PayPal Domestic and International QR Code Transactions – $10.00 AUD and below 1.4% + $0.05 per tran Settles immediately, no merchant account required
Squarespace Business $25.00 per month + 3% per tran No merchant account required
Squarespace Commerce $34.00 per month No merchant account required
eWay Budget Plan $30.00 per month plus 60c per tran – 5 free trans per month Merchant account included – no bank required
Shopify – (Stripe integrated Payment Gateway) Basic Plan USD$29 per month + Stripe trans fees which are currently 1.75% + 30c per domestic tran No merchant account required
Stripe Integrated Domestic : 1.75% + 30c and International: 2.9% + 30c Provides payment gateway for shopping carts such as WooCommerce, Squarespace and Shopify, 7 day Settlement
SecurePay Standard 1.75% + $0.30 per domestic tran and $2.9% + $0.30 per international tran No merchant account
SecurePay Gateway Only – up to 3000 trans per year $800 per year + $0.27 per tran No merchant account
CBA Commweb Need to get a quote from the bank Need a merchant account
NAB Transact Plan $30 per month up to $2,000 per month turnover. Over this amount starts charging 1.5% + $0.30 per tran Need a merchant account
St George eCommerce Solutions Need to get a quote from the bank Need a merchant account
Westpac Hosted PayWay Need to get a quote from the bank Need a merchant account
ANZ eGate Need to get a quote from the ban Need a merchant account

Recommendation

If your shop is new and the volume of transactions low then it is generally recommended that you start off with one of the solutions that do not require a merchant account. Add a shopping cart/online catalogue to your site and process the payments using PayPal, or use the shopping carts/online catalogue’s supplied by Squarespace or Shopify. Your transaction fees will be higher but you can be up and running without waiting for bank approvals.

Once you have a track record and know the volume of transactions you are processing then consider partnering with a Payment Gateway or select the most cost effective Bank solution. The table above has been compiled to give you a rough idea of costs.

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