HMRC crackdown - payment providers must hand over details

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A new crackdown on tax evasion will make information on all credit and debit card payments to UK businesses available to HMRC for the first time.

Under new powers, HMRC can now access information from the UK’s merchant acquirers – the companies that process card payment transactions – to find out the number and value of transactions completed by a specific trader

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Developing a payment strategy

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Do I need to create a payment strategy?

In order to reach new customers, businesses must offer their customers the opportunity to pay in the way most convenient for them. Offering just one or two payment methods is no longer an option. There are many elemants that well influence a business and the direct they take when it comes to who and how they sell and process payments.

Below are just some of the points a modern buisness needs to consider:

• The risks, costs and implications of accepting different payment methods
• Which alternative payment methods to use
• Reporting and reconciliation requirements for each method
• Any PCI compliance issues
• Which currencies to use and for whom

Developing a payment strategy

Issues such as multiple channels, revenue sources, how to package products, local and global payment methods, charge cards, channels sales, revenue reporting, reconciliation, internet wallets and purses, compliance, low cost, reliability, SLAs etc, all need to be taken into account. Give each a little consideration and time so you can determine the interdependencies that exist between the different elements.

Once you have developed your strategy it must answer questions such as:

• What products will sell the best using which methods i.e. social media, online etc.
• Do we use one or multiple payment providers to cover our risk
• How will farud be managed for all this providers
• What currencies do we use and what do we do about currency conversion
• Lastly, how do we keep costs low for everyone

Local Payment Methods

The Internet may be global but much processing remains local. Within many country borders, domestic payment systems remain and often dominate offline and online sales in those regions and/or countries. So much so that accepting the local payment method may become a mandatory need if one is to sell in that region.

Credit cards from around the world

Not all credit and debit cards can be used around the world. For example certain cards can only be taken in certain circumstances. To be able to accept Visa, MasterCard and Amex you can be incorporated anywhere (within reason). However to accept debit cards you must be incorporated in the country the debit card originates, normally the UK and Europe.

http://www.web-merchant.co.uk/premiercards.asp

Alternative payment methods

Alternative payments refers to payment methods that are used as an alternative to credit card payments. Each alternative payment method has its own unique application and settlement process, language and currency support, and is subject to domestic rules and regulations. The most common alternative payment methods are prepaid cards, direct debit, bank transfers, phone and mobile payments and money orders.

Merchant Account Reporting Tools

A key strategic requirement is to have a single source of reporting for all payments data across all financial institutions, currency processors and payment methods. Activity reports are real-time reports that provide detailed information on credit card transactions that have been processed through your merchant account.

Just some of the reporting features you need include:

• Complete online access to your statement, including all transaction and fee details
• View transactions either over a date range or quickly locate a specific transaction
• Easily batch process credit transaction requests
• Generate a summary of disputed transactions
• Scheduled reports provide detailed information on a variety of transactions

http://www.web-merchant.co.uk/reporting_tool.asp

PCI Compliance

PCI Compliance is the Payment Card Industry Data Security Standard mandated by the card schemes for the protection of cardholders and transaction details. According to payment brand rules, all merchants accepting credit card payments are required to comply with the PCI Data Security Standard in its entirety. This includes online and offline

http://www.web-merchant.co.uk/pcicompliance.asp

Anti-Fraud Solutions

Security and fraud is probably one of the most significant concerns for both the shopper and the retailer during an online transaction. In reality an online transaction is probably more secure than a card transaction in a shop or conducted over the phone, as the information transmitted online is highly encrypted using complicated logarithm combinations. However this does not mean you should become blasé about fraud and it should be high on your strategic checklist, especially when selling globally.

http://www.web-merchant.co.uk/antifraud.asp


For more information on payment processing abd alternative methods please visit www.web-merchant.co.uk

Late payments border on criminal

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Late payment for any company, especially an SME, can kill a business. Even if it manages to survive, the time spent on chasing late payments can be exhaustive.

• Over a fifth of SME's (22%) have declined future business from customers in 2012 in an attempt to tackle late payments.
• In total, UK SME's are currently owed more than £36 billion in late payments

Source - Barclays Research: tinyurl.com/d9fvelk

The research also reveals that the impact of late payments on decision makers is often significant with nearly a third (30%) of respondents, who have experienced late payments in the past two years, having to use personal money or assets to boost their cash flow. A fifth (20%) of respondents have suffered extreme stress as a result, and some cases (11%) late payments have nearly caused a business to fail.

In a recent publicised case a glazing company said that it would sacrifice 40% of its turnover rather than carry on supplying Balfour Beatty, because of the constant struggle to get paid. Unfortunately for most companies this just isn't possible. SME's simply have to grit their teeth and put up with it rather than lose their customer.

The truth about late payments

BACS estimates that a number of SME's facing late payments in over £1m with a total debt of £36 billion! The average owed is over £35k. Over a third of people responding to the BACS survey stated that a late payment of £20k would be enough to put them under.

"Do you know who we are?"

That was the response one member of the FSB got when she chased their biggest unpaid bill. Their view was 'we are in control. We will pay when we are ready. You just have to put up with it'. They felt they could simply walk all over the company. As you can imagine the implications are massive.

Another FSB member surveyed stated that he once got told by a late payer "are we wasting our money paying you? Are you going to be around to finish the job?". This verges on criminal.

Another 'joke' is when a late payer will demand a percentage off - often as much as 20% - if they pay on time. Again, criminal. On a lighter note I do know one company who tried this with someone. The response he got was "well sir we'll simply cut off your electricity". It with EDF.

We ourselves have had to put up with late payments. Such things as ignoring our 30 day payment terms and telling us that they will pay using their payment terms. Often as long as 60 or even 90 days AFTER. This is like walking into Waitrose and telling the cashier that you'll pay for your food when you decide. If you weren't rugby tackled to the floor by security before getting to the car park I would be amazed. Luckily we simply turn their payment system or website off and stop them from trading and making money. Luckily this is rare... but does happen.

In 2001 I was on a training course about operating and running company financial accounts, and we were joined by a large construction company. The managing director, very smugly I may add, stated that "we often won't pay small companies so they go out of business and we get the work for free". I have to say several people had to be pulled off him. Myself included.

Top tips to help fight against late payments

1. Revise your trading terms and make sure companies you trade with know them
2. Carry pout credit and other financial checks on a company before doing business
3. Set a maximum credit limited
4. If a company is limited, consider asking for personal guarantees from the directors
5. Always provide written terms and make sure they are agreed
6. When sending out an invoice make sure it is clear and goes to the right person.

Learn more about our merchant account and gateway system at www.web-merchant.co.uk

Children shopping online - keeping them safe and secure

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The children of today (under 18's) have grown up using the internet and have become well established in online shopping. However unlike older online shoppers, they are more likely to overspend, purchase prohibited items and are also be more likely to fall for scams and ID theft.

There are several reasons for the need to control children's online payment activity

Online shopping for under 18's will reach £2.5 billion this year (2013). Therefore the need to safegaurd them and create a safe, responsible and happy shopping environment is paramount.

To begin with, just because children are constantly online, this does not mean they know everything and are tech savvy. Secondly, how many children do you know who have their own credit or debit cards?... Exactly! They shop online and pay with their parents credit cards. Lastly, because of the increasing number of children and teenagers shopping online, companies are increasingly aiming their marketing at them and this market share has increased year on year.

Keeping Children Safe Online

Undoubtedly the most effective way to safeguard your children (and your finances) is to educate them. Set ground rules about using the internet. They should learn to take responsibility for their own actions and develop their own judgement. However the use of parental control settings on your browser, search engine and internet security package (or specialist parental control software) would help too.

The changing online payments landscape

When the above doesn't work, what else is there? Virtual Piggy, that's what!

Virtual Piggy is a payment facility that allows children to safely purchase online while keeping parents in control of all aspects of spending. Virtual Piggy's service works by allowing a parent to register an account, within each account, the parent is able to control how much money is available to the child, how often they receive new funds, which merchants the child is allowed to buy from, and any desired spending limits. The parent is also able to "turn off" the child accounts, and request notifications when purchases are made. The child is able to login to their account, which tracks recent purchases, funds available, savings goals and charitable donations.

Benefits for merchants

Merchants must actively integrate the Virtual Piggy payment option into their ecommerce structure to make it accessible to their customers. With under 18's shopping up 56% in 2012, this would seem a very good way to enter the market and keep everyone safe and happy.  www.virtualpiggy.com

Who are Web-Merchant Services? Learn more at www.web-merchant.co.uk

British record for Christmas online shopping

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Internet retail sales are on course to have risen 30% over the Christmas period as shoppers moved to bag a bargain from home and beat sale queues.

Figures from Experian suggest Boxing Day set a new British record for online shopping.

According to the report, Britons spent 14 million hours trawling websites on Boxing Day, paying around 113 million visits to online retailers on what became the UK's biggest day for internet shopping.

Experian found that web sales were up by 17% on Boxing Day last year.

The figure had been expected to be higher but the company's digital insight manager, James Murray, said: "With a number of the major retailers bringing their sales forward to Christmas Eve, the impact of that was that Boxing Day was slightly muted and not as prolific as we forecast."

Figures show that Christmas Eve was 86% bigger than last year as a shopping day while Christmas Day was 71% bigger, as shoppers took to websites.

British Retail Consortium (BRC) spokesman Richard Dodd said the dash for discounts was boosted by consumers who were feeling the pinch.

He said: "Customers are under lots of financial pressure and are really keen on seeking out value and taking advantage of bargains."

Robert Goodman, general manager of Kent's Bluewater shopping centre, said: "Boxing Day's momentum has continued into today, with the opening of the John Lewis clearance sale being a major draw."

Waitrose said it had enjoyed a record Christmas season - with Sunday, December 23,proving to be its busiest ever.

Total branch sales excluding petrol for the festive period rose 7.7% between Sunday, November 4, and Christmas Eve.

On a like for like basis, sales were up 4.3% on the equivalent period last year.

Learn more about our merchant account and gateway system at www.web-merchant.co.uk

Internet shopping is more popular in the UK than in any other country

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A recent survey from Ofcom shows that shopping online is more popular in the UK than in any other country.

In the UK consumers spend an average of £1,083 a year on internet shopping, compared with Australia which spends the second highest at £842, it said.

The UK's fondness for net shopping is driven by mobile devices.

According to the survey UK consumers are also downloading more data from their mobiles than any other nation.

The Ofcom study also indicated that:

• In December 2011 the average UK mobile connection used 424MB (megabytes) of data, higher than Japanese users who averaged 392MBs.
• 16% of all web traffic in the UK was from mobiles, tablets or other connected devices - more than any other European country.
• Four in ten UK adults now access Facebook, Twitter and others social networks via their mobiles.
• For 18 to 24-year-olds the figures is even higher, at 62%.

British people are also the most likely to watch TV-on-demand and use digital recorders such as Sky+ and Virgin TiVo, the report suggests.

UK consumers are embracing the new generation of internet-enabled TVs with 15% owning such a set, compared to 10% in the US.

Our TVs are also getting bigger - more than a third of TVs sold in the first quarter of 2012 were between 33in (84cm) and 44in (112cm).

The UK remains the cheapest place to buy communication services, although the gap is narrowing. Ofcom said a basket of communication services - including fixed-line telephone, mobile calls and texts and fixed and mobile broadband and TV - costs on average £146 in the UK.

That was £32 cheaper than in France, £101 cheaper than Italy and £168 cheaper than the US.

Want to take payment online? learn more at www.web-merchant.co.uk

Selling online? You need to follow two sets of rules

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When selling online you need to follow two distinct types of regulations. The Consumer Protection (Distance Delling) Regulations 2000 and The Electronic Commerce (EC Directive) Regulations 2002

These are sperate from each other but both are needed.

What is the The Consumer Protection (Distance Delling) Regulations 2000?

The Distance Selling Regulations incorporates European Directives (97/7/EC) into UK law. The legislation provides rights to the consumer and obligations which the seller must fulfill. Typical cases where the Regulations apply include goods or services ordered by telephone or over the Internet.

Information to be displayed before contract formation (in other words, before you pay)

• Who the supplier is, and their address
• A description of the goods or service
• The cost, inclusive of any tax
• Any delivery charge
• How payment should be made and how the goods or services will be delivered
• Notification of the right of cancellation
• Communication costs - for example, the cost of a premium-rate telephone number
• How long the contract offer is valid for
• How long the contract will last, if it is not a one-off performance

This information must be clear and comprehensible. Under Regulation 8 all this information must also be given to the consumer in a durable or storable medium along with all terms and conditions, a geographical address and, if the contract could last over a year, the conditions for taking contractual action.

Cancellations and refunds

The consumer has an automatic right to cancel and rescind a contract at any time from its formation until seven working days after the goods are delivered; or for service contracts, seven working days after the contract is formed (which might be before the service was to have been performed).

Where the supplier has not provided the consumer with all the required information, the consumer has an automatic right to rescind the contract within three months and seven days of delivery of the goods, or of formation of the contract (service contracts).

The automatic right does not apply to contracts made for:

• Products of fluctuating price.
• Audio or video recordings or computer software if they are unsealed by the consumer
• Supply of periodicals or newspapers
• Gambling purposes.
• Customised products.

What is the Electronic Commerce (EC Directive) Regulations 2002?

The Electronic Commerce (EC Directive) Regulations 2002 incorporates the EU Electronic Commerce Directives (2000/31/EC) into UK law. They apply to contracts concluded by electronic means over distance whereby the buyer is a consumer...in other words when a customer is using a website. This subordinate legislation provides for rights of the consumer and provisions for which the seller is obliged to fulfill.

Retailers/service providers must provide the following information to consumers when conducting business via electronic means:

 

• The technical steps involved in placing an order.
• The terms and conditions under which a contract is made. This information must be available to the consumer in a way that can be reproduced and stored.
• Prices must be clear and state whether tax or shipping costs are included.
• The name of the service provider, its email address (a contact form is not sufficient) and a geographic address.
• Acknowledgement of the order by electronic means and information on how to amend input errors made during the order process.
• If it is a company, the company's registration number and place of registration.
• Membership details, including registration number of any trade or professional association of which the service provider is a member.

Any breach of these requirements is considered a breach of statutory duty. If the consumer is not informed of how they can amend errors in an order, the contract can be voided.

Read more about our mandatory website requirements for all merchants applying for our merchant account and payment gateway solutions.

Learn more at www.web-merchant.co.uk

There is a new EC Consumer Rights Directive

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Bans on airlines automatically adding extras and premium rate helpline numbers or surcharges for using credit or debit cards are just some of the 'bad practices' being tackled.

The new directive is aimed at simplifying rules across Europe and boosting consumer and business confidence.

Key provisions are:

• Information given to a consumer before buying goods or services (this applies to all sales - online and off)
• Better cancellation rights where goods are bought online
• Clarification of delivery deadlines and where responsibilities lie if a problem arises
• Charges on post consumer helplines - which must be no more than local rate (like our 0845 number)
• Additional payments on top of the main purchase price will need express consent from the consumer
• Fees charged for a particular method of payment - such as credit card surcharges

The UK is required to apply the provisions on the Consumer Rights Directive to all contracts between traders and consumers with the exception of certain sectors where application is discretionary. The most notable of these are financial, gaming, healthcare, package travel, properties and passenger transport.

the deadline has passed for any consultation (1st Nov 2012) therefore we will be hearing the results of this very soon.

www.web-merchant.co.uk

Google Prediction - Increase In Mobile Technology

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Retailers Are Investing More In Mobile Technology

Google has issued a survey today, which captures some of the key trends we’ll see in the coming months, especially during the Christmas period.

Last year, we saw consumers far ahead of retailers when it came to using digital resources like price comparison tools and more, Google explains. But this year retailers are really betting on mobile, both in-store and on the web.

"Companies are recognizing that websites are not just about ecommerce, they are a gateway to the brand. It used to just be about the transaction, but now consumers need access to mobile, inventory, and more"

Google says that retailers are making investments in their mobile apps to capture consumers in-store with offers, additional inventory and more. for example, the retailer Target has added in-store QR codes to the top 20 toys on sale so in case a toy is sold out in-store, a shopper can just scan the code and purchase the item online. With 51 percent of people research online, and purchase items in a store, retailers need to engage with consumers both in-store and online.

Other stats from Google: 54% of consumers will start holiday shopping before Black Friday; 46% of consumers plan to spend more time shopping around for gifts this year because of the economy; while consumers are researching early, 31% plan to do the majority of their holiday shopping in early/mid December; 37% of consumers say search is their go-to source for gift ideas, and 51% plan to research online but buy in-store; 4 in 5 mobile/tablet owners will use their device for holiday shopping, and mobile users continue searching after Christmas.

What we think?

Mobile websites is an important strategy, however it needs be used in conjunction with desktop websites and other marketing strategies.

Top Tips For Mobile Site Design

Top Tips For Mobile Site Design

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"Google data shows that most mobile use is in the evening"

When creating your mobile site ask yourself who your user is likely to be. Will it be someone sat on the bus going to work or someone sat on the sofa while watching TV? Is your content more likely to appeal to people ‘on the bus’ or people ‘on the sofa’? Which areas of the site will they be interested in and how should you make sure they get the best experience? It’s worth keeping both of these scenarios in mind, however Google data shows that most mobile use is in the evening.

On our website we have written a guide to building the perfect mobile website.

In this guide you will find;

1. Keeping it simple
2. Scrolling - The dangers
3. Navigation and clickable links
4. Speedy checkout process
5. Contact numbers
6. Minimise having to type
7. Big hands and fat fingers

8. Speed
9. Redirecting users
10. Testing

Want to read more? Please visit www.web-merchant.co.uk