Getting Started

There are a nuber of virtual pieces of infrastructure you need.

Domain name.

Hosting account.

A web design template.

Content for your website.

Shopping cart software.

A payment gateway.

The shopping cart allows a customer to select products, add postage and submit a complete order. The payment gateway allows your website to process credit card or Paypal payments and transfer the funds into your business bank account via your merchant facility.

“The best e-commerce websites are ... self-service with immediate results"

For ease of administration, it makes sense to get all of these ingredients from a single provider instead of juggling multiple billing cycles, terms and levels of service. Packaged e-commerce solutions can work out cheaper as well. By logging into your admin panel, you can see the completed orders with all the details you need to pack and ship the items. Simple.

But even simpler are the e-commerce packages that combine many of these elements into one billable, coordinated package.

How to apply for a merchant facility.

Even if you already have a merchant facility for physical EFTPOS and credit card transactions, you will need a separate one for online transactions to transfer money from your payment gateway into your account. To apply for an internet merchant facility, your bank will need a number of supporting documents, including a full business proposal and an annual profit estimate. This is so they can estimate how viable your online store will be.

If you have difficulty producing these documents, discuss them with your bank contact. Don't be afraid to ask for advice. The bank will also want to see your website to check it is not engaged in illegal activities, such as pornography or unlicensed ticket sales. Internet merchant facilities are free to set up, but will incur a fee for every transaction. It is important to research the different banks to get the best deal.

Once the bank has approved your application, your merchant ID and terminal ID can be used to configure your payment gateway. The process usually takes 24 hours.

After setup is complete, customers can use credit cards in your online store, with the payments automatically appearing in your bank account three or four days later.

Many applications for merchant accounts are rejected, usually due to the difficulty in providing detailed profit estimates. But you can still accept payments online by choosing alternative options, such as Paypal, so you still have the benefits of accepting credit cards for a small additional transaction fee. However, the more payment options you can offer, the more sales you can expect.