Due to a number of factors, online sales are more risky than over-the-counter ones. The merchant doesn't really know who the customer is, as they have never met face-to-face. And the customer never really knows that what s/he can see on a Web page is what s/he is getting.
"It is for this reason that extra vigilance needs to be paid when trading online," says Donovan Marais, Channel Manager at Sage Pay.
There are a number of steps that a merchant can take to assure he is dealing with a legitimate buyer. For example, to eliminate fraud, a merchant can implement additional fraud protection techniques like 3D secure, which requires an extra verification step when making online purchases. Merchants can also make use of a payment gateway like Sage Pay, which allows small and medium-sized online merchants to accept credit cards, without the hassle of customers using fraudulent credit cards.
From a customer perspective, you can look out for terms and conditions, and endorsement pages that clearly outline what the buyer needs to do before making a purchase. These terms and conditions are clearly displayed on reputable online trading Web sites, and in many cases, are enforced by the bank so the customers can rest assured their money will get to the correct person and their product will be promptly shipped.
At the end of the day, it always comes down to common sense. "If a product that is being displayed is much cheaper than it is advertised elsewhere, chances are it doesn't exist, and once credit card details are handed over, the client may not even see the product, but could also be left with a range of additional charges to his or her credit card," says Marais.
Seven things an online merchant needs to consider when choosing a payment gateway
When choosing a payment gateway for your business, there are a few more things to consider than price alone. The Sage Pay guide: 'Seven things to consider when choosing a payment gateway', provides insight into all the things you should consider before choosing a payment gateway.
1. How quickly will I be able to start accepting payments?
Sage Pay integrates with major e-commerce platforms and shopping carts so that you can be up and running easily. The company also offers a range of free plug-ins, and customers have been known to go live within 24 hours.
2. Will the provider help boost my sales?
Consumers feel more reassured about their purchase when a Sage Pay logo is shown on a Web site, as Sage Pay is owned by Sage Group.
3. How quickly will I received funds from my sales?
Some gateway providers hold on to your funds for up to 30 days, but we settle your funds the next business day.
4. What payment features will I get to grow my business?
We offer you all the tools you need to accept payments online and grow your business by accepting MasterCard, Visa and American Express card payment types. We also integrate with Sage One, Sage Pastel Express, Partner and Evolution.
5. What kind of fraud prevention is included?
Unlike most payment providers, Sage Pay doesn't charge any extra for fraud prevention. The company is 3D secure, which comes standard, not optional.
6. What is the real monthly cost?
The monthly fee is R40, and there is a charge of R1.00 and 4% commission per transaction (negotiable). There are no contracts, no minimum transaction requirements and no hidden fees. You get all the features you need to help you grow your business and control costs.
7. Is the provider financially secure and stable?
Some payment providers are in difficult financial situations. You don't want to find one day that your provider has gone out of business. Sage Pay is part of the Sage Group, the third largest management software and services provider in the world, with over 6 million business customers worldwide.
For more information, contact a Sage Pay account manager on 0861 338 338 today.
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