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Payment strategy
It is Netgiro's experience that there are two important drivers in a successful payment strategy: the type of business and the local payment customs .
The type of business and the value of the goods delivered are instrumental in the merchant's choice of acceptable payment mechanism. Here are two examples illustrating varying requirements:
An e-merchant offering a subscription service will be looking for a payment method which allows the e-merchant to initiate the collection of money on a monthly basis, which is the mechanism in direct debit. A subscription site may also choose to accept payment methods with considerable rejection rates, since the loss suffered from not collecting the funds is only a matter of a few free days of service at a low marginal cost of goods sold.
A mail order company delivering high value merchandise with normally low margins, ie.computers, would conversely normally focus on fraud screening and apply the means made available by card schemes, such as Verified by Visa among others, to prevent fraud.
The variation in payment customs can also be illustrated by some examples.
At one end of the spectra there are markets such as the US , Canada and Australia , where almost all purchases over the internet are paid for by major card brands. At the other end are markets where local non-card payments such as ELV in Germany are essential when partaking in the local marketplace.
Another variation is in the use of a similar standard payment method between markets. There are northern European markets where books are sold and delivered upon the expectation that the consumer will make a payment, a standard off-line payment where the buyer deposits the amount due into the merchant's account. This option would never be accepted by merchants in other markets as it puts them at the mercy of the consumer's honesty.
It is Netgiro's experience that the first step in a payments strategy is to first build a robust card strategy, followed by alternative payment methods. For a discussion on payment methods and customs please contact the Netgiro office closest to you.
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Local debit cards
Domestic debit cards are widely used in almost all local markets. Local debit cards are often co-branded with Visa or MasterCard, but not always. Co–branded debit cards generally work as Visa or MasterCard when they are used abroad (or on internet if the merchant is domiciled in another country). Non co-branded cards can only be accessed locally.
Local debit cards are generally less expensive to accept if the merchant signs an acquiring agreement with a local bank. The list below specifies some examples of significant local debit cards:
For a comprehensive list of local debit cards supported, please go to: Reach and functionality
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Other payment methods
In almost all local markets there exist one or more alternative payment methods, which could be significant, depending on the nature of service or product offered. These methods include, among others, account deposits and direct debits.
Netgiro's strategy is to offer the most commonly used alternative payment methods in markets where they represent a high percentage of payment methods used on internet.
For a comprehensive list of other payment methods supported, please go to: Reach and functionality
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Business mission
