SUMit Roster Software > Nut's > March 2004 > Payments

Payments

Monday, 22^nd March 2004

It is still tricky to get paid on line. The Siemens phones from last nut were ordered on line, but were paid in an old fashioned way.

I typed my e-mail address, company name and address at an HTML form.
The shop sent me an order number and payment instructions by e-mail.
I retyped those payment details in the web site of my on-line bank service.
The local postman delivered the package, including the invoice.

That is a fine procedure, but there must be an easier way.

Why did I have to retype the order details?
Why didn't the computers exchange information?

Online payment services

Yes, there are easier ways. A lot of web sites support credit card payments. It is an easy way of paying, just type the credit card number. There is no extra charges for the customer, the supplier pays the costs. There is a wide variety of charges among the several on line payment services.

For the Dutch Huizentoppers.nl as well as the SUMit on line roster package I compared a few suppliers. Which on line payment service is most suitable for me? A few possibilities, in alphabetical order.

Supplier Advantages Disadvantages Suitable for

Buckaroo.nl

Supports credit cards
Low, fixed transaction costs

No other payment methods
Dutch language only
Scope: the Netherlands only
Initial costs
Monthly fee

Low to high volume
Credit card payments by Dutch customers

Ogone.nl

Supports credit cards
A lot of payment methods, soon supporting bank money transfers
Low, fixed transaction costs
Dutch, English and French language support

Initial costs: A few hundred Euro
Monthly fee: few dozen Euro.

High volume
International customers

Paypal.nl

40 million accounts worldwide
Credit card support
Other payment methods
Low threshold: e-mail address
No initial/monthly fee
Low transaction costs

Customer must open an account

High volume
International customers

Softpay.nl

No initial fee
No monthly fee
Low rates for high amounts

No credit card payments
High rates for low amounts
Customer must open account
Scope: the Netherlands only

Customers in the Netherlands
Reoccurring payments of high amounts

Supplier	Advantages	Disadvantages	Suitable for
Buckaroo.nl	Supports credit cards Low, fixed transaction costs	No other payment methods Dutch language only Scope: the Netherlands only Initial costs Monthly fee	Low to high volume Credit card payments by Dutch customers
Ogone.nl	Supports credit cards A lot of payment methods, soon supporting bank money transfers Low, fixed transaction costs Dutch, English and French language support	Initial costs: A few hundred Euro Monthly fee: few dozen Euro.	High volume International customers
Paypal.nl	40 million accounts worldwide Credit card support Other payment methods Low threshold: e-mail address No initial/monthly fee Low transaction costs	Customer must open an account	High volume International customers
Softpay.nl	No initial fee No monthly fee Low rates for high amounts	No credit card payments High rates for low amounts Customer must open account Scope: the Netherlands only	Customers in the Netherlands Reoccurring payments of high amounts

Conclusion

The international SUMit on line roster program are best served by Ogone and Paypal.

However, I have not found the perfect on line payment service yet. Each payment service providers has at least one disadvantage:

Threshold: payer has to open an account.
Such an account reduces the target group. Not all customers wish to provide their details in order to pay on line.
High costs, either in initial subscription fee, monthly subscription or transaction costs

For the moment the SUMit roster customers will receive an old fashioned, paper invoice.

Idea: E-AG, Electronic Accept Giro

An good on line service should be possible: easier, more accessible and cheaper. A lot of Dutch individuals and companies use on line banking services. That is an interesting, large and growing target group.

Would it be possible to reuse this existing infrastructure of the payer's own bank?

Idea: The Electronic Accept Giro (EAG). The EAG will be the electronic version of the current Dutch paper accept giro, a fine payment method for Dutch and maybe even international customers.

Paper version Electronic version

The supplier specifies the order id, product, amount, own bank account and name on the accept giro.
The customer completes the form with own bank account, name and address and mails the signed form to the own bank.

Supplier issues a HTTP POST to a payment portal with: order id, product description, amount, own bank account and name.
The customer types his bank account number and automatically gets rerouted to the on line service of the own bank. Just log in using the own on line banking service to accept the payment.

Paper version	Electronic version
The supplier specifies the order id, product, amount, own bank account and name on the accept giro. The customer completes the form with own bank account, name and address and mails the signed form to the own bank.	Supplier issues a HTTP POST to a payment portal with: order id, product description, amount, own bank account and name. The customer types his bank account number and automatically gets rerouted to the on line service of the own bank. Just log in using the own on line banking service to accept the payment.

Till next nut,
Nut