There's a lot of ways to receive funds on your ecommerce website, from new methods like Apply Pay & Google Pay, to PayPal, Stripe, and of course more traditional payment methods like bank transfer - made easier with Poli.
We take a look at how to get paid on your eCommerce website. Depending on the framework (how your site is built) there are many options available, from the big corporates overseas to our own, more local New Zealand payment gateways. Your website's needs, and those of your business and customer base will help to determine the best method for your business.
Credit card payment gateways are third-parties used to process credit card payments online - with many supporting offline (in real life) payments also. You'll need a payment gateway if you're going to be taking payments online in any form, whether for a product purchase, subscription or repeat billing, or storing a card to bill later.
Note: The information below is provided to businesses within New Zealand selling online. It does not matter where in the world your customers are. Current at 4 June 2021.
PayPal has come a long way from it's origins as an internet payment alternative and is a great option for customers, including those who don't have a PayPal account. Since PayPal processes credit card transactions alongside it's own account methods it's now a complete solution for credit card payments. PayPal also supports a wide range of currencies, credit card and payment types (Eg. Visa,Mastercard, etc).
Rates in New Zealand are 3.4% of the transaction total, plus NZ$0.45 per transaction. No minimums apply and there are no setup fees. No merchant account required. More on PayPal's Website
Stripe has risen quickly to become a major player in the payment gateway industry. With their lower transaction fees it's easy to see why the uptake has been so quick. Stripe does require a higher level of integration however so depending on your website's requirements it may be more expensive to implement. Stripe also support a wide range of currencies, credit card and payment types.
Rates in New Zealand are 2.9% of the transaction total, plus NZ$0.30 per transaction. No minimums apply and there are no setup fees. No merchant account required. More on Stripe's Website
The drawback with Paystation (and Windcave below) is the requirement for a Merchant Account. This is an account with either Visa or Credit Card that allows you to 'take' credit card paymanets. If you have a physical store it's likely you'll already have this in place for your POS systems but it does add a layer of both paperwork and fees over and above those charged by the payment gateways.
Owned by TradeMe, Paystation has been around for over a decade and has a solid history of reliability. Integration is easy, and being local they can sometimes be a bit more responsive for support than some of the larger gateways overseas.
Rates in New Zealand are from $39 p/mth plus $0.45 per transaction after the first 100 transactions. Setup fee of $145. Lower rates are available for higher transcation volumes. Merchant account required - setup fees and transaction fees will apply. More on Paystation's Website
Formerly Payment Express (and DPS), now Windcave, this payment gateway has grown outside on New Zealand and operates in many countries. Unlike Paystation, Windcave operates in the POS space as well, providing offline payment options for retail and more.
Rates in New Zealand are 2.8% of the transaction total, plus $0.30 per transaction for Visa/Mastercard. Other cards have separate rates. Minimum fee of $30 per month applies. Setup fee of $99. Lower rates are available for higher transcation volumes. More on Windcave's Website
Both of these payment methods use a customer's existing credit card loaded to their 'wallet'. As such most payment gateways support Apple Pay, including Stripe and PayPal.
Providers such as Afterpay, Laybuy and Zip have completely changed the way the old system of 'layby' (or layaway) works. With these methods your customer pays their cart total in four or six installments, but you receive the funds immediately - and your customers receive their purchase immediately also. The system works by charging penalties for late payment to the customer, and charge a small commission on the transaction total like other payment gateway providers. Read more at Afterpay, Laybuy or Zip.
While this may be suitable for some businesses, this method is more labour-intensive, both from the point of view of the customer and the business itself. Having to wait for funds to transfer, sometimes overnight, can be prohibitive for deliving good service, not to mention the hassle of having to check bank accounts multiple times. However, you know your customer base and if there is demand for this, it's worth having internet banking as a payment option rather than discouraging customers from purchasing.
Internet banking made easier for everyone, POLi is a system that connects your website to a customers bank account in a highly secure way to facilitate a bank-to-bank transfer without their having to leave the website. This means the customer doesn't need to login to their bank's website separately. It also means that while its suitable for one-off payments, it can't be used for subscription billing or 'pay later' services.
Rates in New Zealand are 1% of the transaction total, capped at $3 + GST per transaction. Minimum fee of $10 per month applies. No setup fee. More on POLi's Website
We can help you decide which option will be best for you. Contact us today and we'll have a chat about what you're looking to achieve.