Tips for new sellers on choosing the lowest cost payment serviceBy June Sim · 2nd March, 2016
In a previous blog post we shared the 3 Tips of choosing your payment gateway / The importance of payment gateway to your online Business. However, I believe payment gateway is still a hard issue for those new to e-commerce. Today, I would like to share some tips on payment options for online sellers with a limited budget. We always encourage people to subscribe to payment gateway service and sync the service together with their store, in order to provide a convenient payment method for buyers. But what if you are just starting out and don’t have enough budget for payment gateway? Let’s find out the answer.
Before we start to discuss, let's go through some questions first.
How much budget do you have to start your online business?
Be honest. There are many sellers that are just trying to start something, they might not be ready to spend much of money at the very beginning.Thus, their budget will be as low as possible. If you belong in that group, here are some tips for you when choosing the right payment method. Option 1: Do not subscribe any payment gateway service.
Just provide bank transfer payment method in the beginning.You only need to have a bank account and have it displayed with a set of instructions. (Of course, you may lose some selling opportunity due to lack of secure payment method but it’s ok when starting out)
Option 2: Subscribe to free accounts of online banking services through promotion campaigns from payment gateway provider.
For me, I can say that this is the best option for new sellers. The setup fees could be waived due to the promotion during that time. (Normal setup fees for online banking service from service provider is RM399-499), although transaction fees is still applicable for any transaction via online banking service, but it only happens when you get sales!
Most importantly, Malaysian buyers more prefer this payment method from sellers. (Recommended: latest online banking service promotion from MOLPay & eGHL, don't wait! grab the promotion first!) Option 3: Choosing the transaction fees charging method rather than setup fees.
Again, as a new seller, you might not have a big enough budget to start your business. the starting fund is probably as low as possible. Thus, I suggest you choose the transaction fees charging method rather than setup fees charging method. For example like Paypal. Paypal setup fees is zero and they only charge for transaction fees (every transaction RM2 + 3.9%). Although the transaction fee is higher than other service providers (normal transaction fees is around 3%), but it solved the budget limit problem from new sellers.
Last option: If you really like to subscribe the credit/debit card payment method to your buyer.....
As you know, you should pay up to RM900 bank processing if you subscribe the service of credit/debit card payment method. It's considered a quite high spending cost for the new sellers. but don't be too worried, I suggest you choose the promotion plan from this service provider: eGHL. eGHL is running the lowest price package in the market. It’s only RM399 to subscribe a credit/debit card payment service! (Know more about the promotion plan from eGHL)
Have more questions? kindly leave your comment as below, I will reply you about my personal suggestion to you.
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