If you’re selling products on your website, you’ll need to support a range of payment options including credit cards. Here’s the lowdown on what your options are.
For the simplest option, you could consider plain old internet banking. Once a customer has made a purchase, your website can be set up to send out an automatic email advising your bank account details. TradeMe’s a great example of how this option can work.
The down side here might be the admin. Without immediate payment, you’ll need to match up the deposit to the item after the payment comes in. In the meantime, your stock levels are affected and if the payment doesn’t come, you’ll need to manually put your item back in stock.
The plus side is this option will cost nothing at all to set up and setting it up is simple.
POLI is another internet banking option, though this one is immediate. Upon purchase, the buyer is transferred to their bank to log in and make their payment, then back to your website where they are issued with a receipt. With a fee of 1% payable on each transaction (capped at $3) and no monthly payments, this option is relatively cost-effective.
There are many credit card payment gateways available. In New Zealand the options are: eWay, Paymate, Paypal, Swipe, Stripe, Paystation and Payment Express. For the purpose of keeping you awake while reading this blog, we’re only covering Paypal (been around the longest) and Stripe (our favourite). This should give you enough information to then compare your options.
PayPal has been around almost 10 years, making it the oldest online payment gateway and today it’s accepted in 202 countries. It’s simple to use and easy to set up.
The current rate for transactions is 3.4% plus a fixed fee of NZ$0.45. PayPal is one of the few payment gateways to charge merchants zero monthly fees.
To accept payments via PayPal you’ll need to set up a PayPal account. There’s no charge for this.
PayPal holds your funds in your PayPal wallet allowing you to use these anywhere PayPal is accepted, or for a small charge ($1 in most cases), you can withdraw this down to your business bank account.
Stripe has been around a long time as well, though many people haven’t heard of it as Stripe only came to New Zealand in early 2017.
Current transaction fees are 2.9% + NZ$0.30 per transaction, making it a cheaper alternative to Paypal. Setting up a Stripe account is also straightforward and free. Like Paypal, there are also no monthly merchant fees with Stripe.
Stripe supports payments to be taken directly from your shop (in most cases) which removes the need for redirecting to another page when you’re trying to make payment.
Unlike PayPal, funds from Stripe will automatically transfer to your nominated business bank account within a few days.
Every option on offer will include different fees and features so it’s important to compare apples with apples.
We recommend PayPal or Stripe as both are fuss-free and cost effective, easily configured on your website and have no monthly fees.
To capture those customers who don’t have a credit card, you could choose to have internet banking on your website in tandem, operating like TradeMe, with an automatic email sent out to the buyer. That way you’ve got two great payment options available and you’re also not losing out on those potential customers who don’t have a credit card.
If you’d like some help with your website, just get in touch by contacting us below, or give our team a call on 04 586 3909.