The online payments business has been dominated by the global credit card schemes – Visa and MasterCard. While current trends suggest that there will be more players and more payment methods in the online market space, the importance of the global schemes will remain.


For businesses selling online the acceptance of global scheme cards is central to the payments strategy. Linked to this are several key considerations:

» The processing of credit card transactions attracts a percentage (ad valorem) charge from the financial institution (acquiring bank) that will settle these transactions. This fee will vary from region to region and is usually made up from several elements.

» If a business is selling into different regions – i.e. there are inter and intra region sales then the fee may vary depending on the source (issuing country) of the card. A blended rate may be on offer from the financial institution.

» The region in which the business is based will also impact the fee – for example a US business may have different levels of interchange and hence fees than that of a European business.

» To manage the “risk” associated with acquiring credit card transactions, financial institutions are sometimes seeking deposits (maybe equivalent to the level of unfulfilled revenue) or alternatively seeking to release funds as the goods are shipped.

As a business you may consider using more than one financial institution, spread your own costs and risks and maximise access to the lines of credit that are made available.

By using a proven payment gateway (such as Realex Payments) you can gain easy access to multiple financial institutions and often create a more competitive situation.