Ten years ago, when starting a business, the location, size, signage, and storefronts of your shop were the aspects where you would dedicate the most time and attention. Today, we see that these meticulously prepared stores have been replaced by carefully designed e-commerce websites.
Rapidly changing habits worldwide, the increasing focus on mobile phones, computers, and tablets, and the search for fast and practical solutions have led people to shop from e-commerce sites. To successfully navigate this shift, entrepreneurs must act cautiously and, most importantly, offer secure shopping options.
As not only large brands but also small and medium-sized businesses turn to e-commerce platforms for online sales, one of the biggest questions that arise is how payment systems work on these websites. We have conducted research to explore the most commonly preferred payment methods in e-commerce and how these systems operate, and we are excited to share our findings with you.
Payment Systems on E-Commerce Websites
There are many payment methods available for receiving payments on e-commerce websites. After designing your e-commerce site, selecting the right payment methods to use is crucial for your potential online customers. The most preferred payment methods by both online shoppers and e-commerce businesses include bank transfer/EFT (which involves physical money), cash on delivery, mobile payment, and, of course, virtual POS, which often raises the most questions.
Payment Systems Using Physical Money
Payments made using physical money on your e-commerce site are invaluable for potential customers who do not have a credit card, prefer not to use their card information online, or whose credit cards are not enabled for online shopping. You can accept payments using physical money through bank transfer/EFT or cash on delivery methods. Essentially, these systems are the online version of payment methods you would use when shopping in a physical store. Many internet users today still prefer these payment methods as they find them more secure.
Bank Transfer / EFT Method
Bank transfer allows transactions within the same bank, while EFT (Electronic Funds Transfer) enables money transfers between different banks. The bank transfer/EFT payment option is known as the best alternative to virtual POS and is an excellent opportunity for customers who are concerned about the security of their information online. To avoid losing potential customers with security concerns, e-commerce businesses should definitely offer this payment method. Although this method is not commonly used by large brands today, it is a preferred option for businesses with small to medium-sized e-commerce websites. For this reason, bank transfer/EFT systems are frequently used as a payment method on e-commerce sites.
Cash on Delivery System
Cash on delivery is a system where the customer completes their purchase on the e-commerce site with the commitment to make the payment upon delivery. The payment is collected by the courier company when the product is delivered, either in cash or via credit card. While the cash on delivery method is advantageous for buyers, it is a risky option for e-commerce businesses. The primary risk arises from the tendency of customers to cancel the order during the shipping process after the purchase is made on the website. Additionally, if the customer is not available at the delivery address, there is the possibility that the e-commerce business will receive payment later than expected. Therefore, although cash on delivery is a good option from the customer's perspective, it poses a risk for businesses.
Mobile Payment System
This system, which stands out for its ease of payment, involves obtaining confirmation for each payment through a code sent to the customer's phone number. In this system, the payment amount is reflected on the phone bill for customers with a postpaid plan. For customers with prepaid plans, payments are made by deducting from the balance associated with their phone number. The mobile payment system is frequently used by both e-commerce businesses and customers due to its speed compared to other payment methods.
Virtual POS Payment Systems
Being the most preferred system for customers shopping on e-commerce websites, virtual POS payment systems are also one of the biggest concerns for businesses planning to set up an e-commerce site. With virtual POS payment systems, payments can be accepted via credit cards, virtual cards, bank cards, and prepaid cards. While the customer's information is verified on one side, the payment process is carried out on the other side. Just like making a purchase by swiping a card through a physical POS device, in virtual POS, the information is manually entered and verified since there is no physical POS.
Virtual POS, an easy-to-understand and implement payment method, can be integrated into all e-commerce websites. At Saruhan Web Ajans, we integrate virtual POS systems into the e-commerce sites we work with.
Virtual POS and Security
The SSL certificate, which is mandatory for e-commerce sites by banks, is implemented to prevent customers' credit card information from falling into the hands of malicious individuals during the transfer process. Thanks to the SSL certificate encryption system, virtual POS fraud can be significantly reduced. Additionally, to further enhance security and provide extra protection, the 3D Secure system is also used. The 3D Secure system, designed to make e-commerce sites more secure, works through the mobile number linked to the bank account. This double security system creates high trust both for potential customers and e-commerce businesses. In the e-commerce sites we set up, we aim to provide maximum security for both our client companies and their customers. We are here to support e-commerce sites with integrated virtual POS systems from all banks and SSL certificates, ensuring the highest level of security!
How to Obtain a Virtual POS?
This question is one of the most confusing for those who want to start an e-commerce business. Although it may seem like a complex and lengthy procedure, obtaining a virtual POS for your business can be much easier with the right steps that complement and follow each other.
For e-commerce businesses to acquire a virtual POS service, they need to apply to banks or BDDK-approved payment institutions. To apply to banks, the e-commerce site must have products or services for sale, membership agreements, sales agreements, return and cancellation procedures, and distance selling contracts, among other standards, all of which must be complete. Additionally, when applying for a Virtual POS with banks, documents such as a copy of the ID card, signature circular, partnership agreement, and tax plate must be completed. Once the virtual POS applications are approved within the specified process by the bank, the information sent by the bank is integrated with the virtual POS module installed on the site. Most banks in Turkey charge a membership and entry fee. The amount faced by e-commerce businesses in this process will vary depending on the company's commercial volume, record, and the business relationship with the bank.
Since applying to each bank individually creates a tiring, complex, and costly situation for most e-commerce businesses due to their busy work schedules, many prefer to work with intermediary payment firms that provide virtual POS payment systems. This way, the process can be managed more efficiently and speeded up. However, when working with intermediary payment firms, additional costs such as commission fees and per-transaction fees may arise. These commission and transaction fees vary depending on each firm and the cooperation conditions between the businesses, including factors such as payment terms, collection intervals, and inventory volume.
The most preferred intermediary firms providing virtual POS payment system services in Turkey include iyzico, PayNet, PayTR, iPARA, and WireCard. At Saruhan Web Ajans, we set up virtual POS systems through all these intermediary firms. Let’s explore these firms and their services;
What is WireCard?
In Turkey, Mikro Ödeme/3PAY, the leading mobile payment provider and number one partner of all GSM operators, became Wirecard Payment and Electronic Money Services Inc. after acquiring 100% of Wirecard AG in November 2014. Unlike other intermediary companies, their installment processing rates vary. The most advantageous service for e-commerce businesses is that they can process payments the next day. Additionally, they stand out by not charging annual service fees, transaction fees, or chargeback fees. Payments can be made in Turkish Lira, US Dollars, Euros, British Pounds, and Russian Rubles, and the received payments are transferred to merchant accounts based on the exchange rate of the day the payment is received.
Wirecard Current Commission Fees
The commission to be paid for all cash transactions, including taxes, is 2.39% per transaction. Wirecard does not charge an annual service fee, setup fee, transaction fee, or chargeback fee.
Iyzico
Iyzico is a payment gateway that offers services like Virtual POS, Protected Money Transfer, EFT, and marketplace payment solutions for e-commerce businesses. The company is expanding every day with its partnership with PayU, another virtual POS payment provider. Iyzico stands out for its lack of membership and registration fees. Iyzico customers make their payments on Wednesdays each week. They offer installment payment options for credit cards like Bonus, World, Maximum, Cardfinans, Paraf, Axess, and Advantage. For installment payments, customers do not pay in parts; instead, the payment is made on the Wednesday of the week following the payment receipt, based on the total amount.
Iyzico Current Commission Fees
For corporate merchants, commission rates start from 2.79% per successful transaction, along with a transaction fee of 0.25 TL. There is no initial fee payment required for Iyzico.
PayNet
PayNet is a financial technology company that provides easy and secure online collection solutions with B2B operations. It stands out for being compatible with all bank and credit cards. In addition to other companies, PayNet customers are required to pay a membership fee according to the package they choose. PayNet makes payments to e-commerce businesses on a weekly basis. Installment payments are made after deducting the service fee from the total amount.
PayNet Current Commission Fees
PayNet charges an entry fee depending on the selected package.
PayTR
PayTR provides various payment services such as Virtual POS, Payment Link, Marketplace, Card Storage, Mobile POS, Recurring Payments (Subscription Model), and Wire/EFT for e-commerce sites, mobile applications, and B2B payment collection companies. Unlike most other payment providers, PayTR does not charge any membership fee. The key feature that makes it attractive to e-commerce businesses is the absence of hidden fees. It is compatible with all banks.
PayTR Current Commission Fee
The commission rates are determined based on the product stock, business volume, and monthly turnover of the e-commerce businesses.
Payments for successful transactions are transferred to your account on the next business day during working hours. PayTR does not make payments on official holidays (religious and national holidays) or weekends. Payments are transferred to your account on the first business day after the official holiday ends.
iPara
iPara is a payment service provider offering online payment solutions for e-commerce businesses. The payment term for international transactions is 21 business days. The commission rates for member merchants are determined based on the preliminary application, and after a consultation with customer service, the proposal is received via email. The most advantageous service for businesses is the absence of an annual Virtual POS service fee.
iPara Current Commission Fee
The commission rate for all international transactions made via iPara is 2.99% for single payments.
At Saruhan Web Ajans, we assess and implement the most suitable payment system for your e-commerce site by evaluating it with you. For more detailed information on designs that will best represent your business in the digital world and payment systems that establish trust-based relationships with your customers, feel free to contact us using our contact details.
