Many small companies are unable to accept credit card payments for one reason or another, so trading on the Internet need not be dismissed completely. You will be glad to hear that there are a number of options you might consider when offering a payment system on your web site, and not all of them involve the use of a credit card.  Here we look at the different ways payment transactions can occur across the Internet, which one is right for your company will wholly depend on which you feel to be the most straightforward with ease of use for both you and your customer, it will also depend on the type of web site you have developed.

Credit or debit option

Most businesses wanting to trade online often look at offering credit card facilities on their web site as vital as most people have already acquired a credit card.  If you have decided to use this option then the next decision you need to make is how you intend to set up your credit card transfers.  

• Terminal Input
  You may decide to set the system up yourself and utilise a credit card terminal.  If this is the option you have chosen then you really need to be sure that you are aware of the Data Protection Act and have checked your web site's security arrangements thoroughly.

• Payment Gateway
  You may decide to utilise a number of services which act as a gateway and process the payment side of the transaction so you don't have to deal with credit card details In effect payment gateways offer a sort of "virtual swipe machine" so you can dispense with the terminal. Examples of companies offering payment gateways are NetBanx and Worldpay.

• SET and IPGS
  MasterCard and Visa also offer a secure payment system known as SET (Secured Electronic Transaction).  This system works with digital signature and encryption technology which all merchants must have to trade using this system. Credit card holders who wish to use SET are also given the same technology.  In effect it is a way of checking the legitimacy of both the merchant and the card holder thus preventing the likelihood of fraud.  Once a transaction has been made, details are processed with your acquiring bank and the transaction is complete.

• Digital Wallets
  The digital wallet has been devised to act as a virtual wallet.  It works along technologies such as Visa and MasterCard's SET facility and is vital for the running of the service.  In a nutshell, instead of a customer using their credit card they would simply use a piece of software on your machine to link similar software on your machine.  This software would contain signatures and encrypt any information transferred.  The customer would follow instructions using this software to send you their transfer currency.  Visa and MasterCard have embraced the idea of the digital wallet, as well as CyberCash.  In fact this technology seems to be growing in popularity and you will probably find that it will be the standard  in the future.