As a newly started web bussiness it can be difficult to find the payment solutions. Here are some of the challenges you encounter as a newly started web business.
Which payment solutions can you choose for your web business?
It can be difficult to get an overview of which payment solutions you can choose for your web business. There are traditional payment solutions, external payment solutions and mobile payment. Here you get a guide to the different models.
Traditional payment solutions
A child has many names, but for the sake of simplicity, we here use the terms ‘payment gateway’ and ‘redeemer’ when we talk about traditional payment solutions.
Payment gateways
A traditional payment solution requires a payment gateway and a redeemer. Payment gateways are the virtual counterpart to the physical payphone machine. It is the technique that ensures that customers can pay with cards at all. The payment gateway encrypts all information and passes it on to the acquirer. The list of gateways is long, but here is a selection of options:
ePay
Quickpay
Dandomain
Wannafind
Nets (Netaxept)
DIBS
Point
CyberSource
Worldpay
When choosing a payment gateway, be aware of which ones work with which acquirers.
Acquirers
Your company must be registered with a acquirer to be able to receive card payments. The acquirer’s function is to communicate with the banks. It then knows where the money comes from and where to send it. It is the acquirer who decides which payment cards can be used for payment. In Denmark, Nets has a monopoly on redemption of Dankort. Do you want to offer your customers the opportunity to pay with international cards (eg credit: Visa, MasterCard, American Express, and debit: Maestro, Mastercard Debit, Visa Electron) there are several redeemers to choose from (select):
Nets
Teller
Euroline
Swedbank
Handelsbanken
Valitor
Elavon
Nordea
External payment solution
You must be aware that it may take a long time to be approved by a acquirer.
With an external payment solution you should not think about finding a redeemer. Best known in this category is, according to our experience, PayPal who has been on the Danish market for many years. The external payment solution receives payment from the customer via a redeemer.
Then it pays the money to you via a normal bank transfer. Recently, several providers have emerged, for example. Braintree (part of PayPal), Paymill, 2Checkout, yourpay and Stripe.
If you choose an external payment solution you must be aware that there may be fees associated with transferring money from an American to a Danish system. In addition, the external payment solutions often require a higher transaction fee than traditional solutions.
Mobile Payment
Instead of the more traditional above solutions, webshops also have the opportunity to offer customers mobile payment. As the name suggests, the customer pays via mobile, and must not at all have the Dankort out of his pocket. Paii, MobilePay, Swipp and Paymill are among the most popular mobile payment solutions in Denmark.
The different solutions already work with a redeemer. You will therefore typically need to contact your existing acquirer if you want to set up mobile payment. Many of the external systems and gateways also offer their own mobile payment solutions.
Considerations before choosing solution
There are several things that matter when you, as a webshop, have to choose a payment solution. Here are some of the immediate considerations you can make:
Consider how important it is for you to get started quickly. For example, the approval process at Nets is long, while at PayPal you can be ready to receive payments within hours.
