Accept Credit Card Payments Online

Spoiler Alert: It’s not easy!

You’re already shopping online, and it seems so easy. So now, you’re ready to expand your business by accepting payment for goods and services online. It’s not that easy.

There is no shortage of ways to sell your product online; you could set up your own online store, a storefront service like Caribshopper, sell via social media platforms like Facebook and Instagram, collect tips for your live stream or donations for your charity.

There is, however, a shortage of effective, efficient and inexpensive ways to accept remote (online) credit card payments.

The Jamaican banking system and regulations are very different from those in the United States and Europe. As a result, we can’t expect that inter nations services will work as expected, if at all in some cases. Fortunately, there are some local offerings to replicate a near-seamless sales experience for your customers or donors.

Commercial Merchant Account

Consider opening a merchant account with your existing bank. The top three, Scotiabank, National Commercial Bank and Sagicor Bank, all offer online payment gateways via credit card which you integrate into your website or social media accounts.

The challenge is the barrier to entry. Know Your Customer (KYC) rules mean that you have to submit quite a bit of paperwork to quality. You’ll need to undergo some training and assume some risk related to fraud and refunds.

Third-Party Merchants

If you have a micro business and getting a bank merchant account seems like too much, consider this. LASCO Financial Services recently announced a BOJ electronic pay sandbox called LASCO Biz. They will provide the infrastructure to set up your storefront on a website, accept credit card payments on your behalf, and transfer it to you via your bank. Everything is handled locally.

Payment Gateway Providers

Popular international services like PayPal, Cash App, Venmo, Zelle and Shopify are all options to accept credit card payment online. The challenge is, they are all settled with US banks. That means you will need access to a US bank before you can remit the funds locally.

The advantage is that customers are familiar and comfortable with these brands, they are relatively easy to set up and can often integrate with email marketing platforms.

PayPal is especially popular in Jamaica with Zelle and Cash App catching up.

Fees and rates

In all cases, you can expect a multitude of processing fees. Providers take a percentage of the sale (anywhere between 2 - 5%) and a processing fee per transaction (usually about US$3.00 per transaction). Then there are monthly or annual fees for access to the service and finally, a registration fee just to get started.

There are some additional considerations for international providers, not the least of which is the exchange rate, which can be unfavourable, to say the least. Another concern is the settlement time; there could be delays of a month or more before you can access your funds.

The fees, rates and delays can significantly eat into your margins, but provide increased convenience and security for customers and donors.

Remittances and Transfers

Credit cards are great for payments as small as US$5.00 and even for larger payments up to US$1,000.00. Over that, you should consider remittances or bank wire transfer as more practical, less expensive options. If you have a foreign currency bank account, you can receive the funds in US dollars (or whichever currency). Unfortunately, remittances automatically convert to Jamaican dollars at arguably the worst rates ever, specially for regular sales.

Jamaicans have access to Western Union, MoneyGram, RIA and Xoom remittance services.

Aggregators

Avoid the hassle of setting up your own, self-hosted storefront (and logistics) with the use of an aggregator like Caribshooper. You can add your products to a marketplace already filled with customers. Your items are sold and delivered to international customers while you collect your payment locally.

Caribshooper indicated that funds from your sales are deposited directly to your bank account regardless of how or from where the customer makes their payment.

Best Option

Accepting credit card payments online telegraphs to your clientele that you mean business. It’s not easy, but it many cases, it is worth it.