Why online payment service?
For business that utilize internet to reach and deal with their customers (e.g. online merchants), they must see the importance of a reliable, secure link between its paying customers and the bank accounts to enable their customers to pay in confidence and quickly.
Using Payment Service Provider (PSP)
In Hong Kong, it is unlikely that your business can directly engage banks’ online payment service into you businesses. Therefore, the wide range of payment intermediaries namely payment service providers (PSP) are available in the market for your services.
Those PSP are offering one simple function: Providing a link between your customers to your bank account.
For example, Paypal is one the giant in the field, most the business has already deployed this solution. Like other online payment platform, it allows people and businesses to send and receive money through internet through their drawing from senders’ credit card and banks account, let users enjoy simple interbank transactions.
Comparing to traditional bank transfer, using PSP makes the banking details of senders and receivers transparent to each others because the PSP handle the money as a intermediate changer between them, thus added a layer of security and make the payment easier.
The drawback of using PSP is the addition of direct cost in each transaction. The PSP charge the users for keeping them running. Moreover, the receivers initially store the payment in the PSP system under their accounts, they need to transfer the money to their bank accounts when they need to use them outside the scope of PSP, again charges may take place.
Tax and Legal matters in Hong Kong
No specific taxation is imposed for online transaction. And, no specific restriction of the items that are not allowed to sell online.
How to be a successful online seller?
Undoubtedly, making payment as easy as possible for your customers to pay is essential for increasing sales. We suggest all online business to follow the below advice for serious online sales:
1. More than one payment options
Depending on only one online service provider is never a problem unless you are sure that all your customers are able to access this payment platform.Your website can capture the majority of potential customers by supporting more than single PSP on your website.
2. No registration
For first-time customers, forcing people to sign up for an account is too intrusive like put up a wall like that preventing people from paying. Moreover, your customers may feel unsafe to provide their personal details to you, not to mention the hassle to remember another set of username and password.
By using PSP, your customers can skip the registration in your website in order to make payment.
3. Minimal information
Your website should only request the essential information to complete the deal. Filling a page-length form can mean a stop-sign for customers.
Any, if you really need the information, your purpose and future usage should be included and include the choice for customers to delete their information anytime in the future.
If your customers have already sign-up in the PSP that your website supports, your customer can finish the payment without re-enter their information.
4. Emphasis on security and privacy
You need to reassure your customers that their payment are secure and their personal information will never fall to the hands of unauthorized parties.
Moreover, your need to ensure that your PSPs have implemented the updated security measure in the transaction e.g. Secure 128-bit SSL security encryption.
Most of the PSP allows merchants for seamless integration of payment into their websites and offer customization for a fluid flow of payment. A consistent interface of checkout can also reassure your customers.
Setup requirement for seller:
Registration documents, may be required showing name of Director(s).
Proof of existence business and history.
Company Bank Account
A company bank account so that the money received can be transferred to.
Credit Card Account
A personal/organizational credit card so that the money sent can be drawn from.
General fees charged by PSP
- One-off setup fee
- Monthly membership fee
- Transaction fee/rate (charged per transaction)
- Money Withdrawal Fee (transfer form merchant account in PSP system to company bank account)
- Exchange Currency Rate
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