Online Payments for e-commerce systems: how to configure them

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This article is a user guide for online payments in Italy.
The same tools described in this blog will have different settings according to the country of origin.

When choosing the online payments methods to adopt, there are several aspects to consider. Whether you manage a small store or a large e-commerce website, there are a number of functionalities needed and not to be underestimated. Let’s review together which ones.

  • The intuitiveness of the payment method and its ease of use;
  • The security of the payment method adopted;
  • The charges encountered, both from the user and retailer’s side, with each payment;
  • The compatibility with all the existing devices (smartphones, tablets, web TVs);
  • The back office online equipped with advanced reporting capability and the possibility to integrate it fully with one’s own management system.

The speed with which web tools evolve make it difficult to identify a single channel for e-commerce owners to use to collect payments. Nowadays, however, among the most popular ones there is Nexi XPay thanks to its e-commerce functionality PayPal.  In addition to these new marketing tools, there are payment method options that easy to use also for those who are less technologically inclined.

Below is a brief analysis of the two giants in the payment systems world and a few instructions on how to configure them correctly on one’s website.

Nexi: main functionalities

Nexi is the ideal solution for small, medium and large companies that need a secure payment method for their e-commerce system, one that can be easily integrated with the major CMSs.

Based on the size of one’s company, there are two different plans available: XPay Easy and XPay Pro.

Both packages of the Nexi (XPay Easy e XPay Pro) e-commerce solution offer a number of advantages. Among them, there is the possibility to accept online payments through the most used international circuits: Visa, Visa Electron, V-Pay, Mastercard, Maestro, American Express, and Diners.

Payment system integrated on one’s website

Nexi makes available to its users a payment interface with the collection of sensitive data (technically called iframe) to be integrated into the e-commerce website. This area can be modified to use your company’s brand for a more fluid and consistent payment experience.

Full customization

Thanks to the XPay Build solution, it is possible to host the payment form inside your website, without redirecting the client to the XPay payment page, but at the same time avoiding to have to manage the credit card data information. Contrary to the iframe solution, using XPay Build the customization possibilities are even more. The iframe and XPay Build solutions are available only for those who choose the XPay Pro package.

Collection management options

There are essentially two options to collect payment through Nexi: immediate collection or delayed collection.

The choice depends on the type of transaction and the characteristics of the business. For example, if you manage a used-items store, you may need to collec payment from the client a little later, in order to check the availability of the goods. Either one of the methods can be easily selected through the user’s profile, in the backoffice area.

Configuration

The steps necessary to best configure the payment system via Nexi are just a few. After having registered to the right plan for one’s business (to register all that is needed is the identity card and the fiscal code), uploaded the documents and generated the digital signature, you are ready to access and use all the payment tools.

In order to integrate the functionalities of your e-commerce website, you will need two different data: an alias and a mac calculation key. Both will become available on Nexi website once logged in.

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definition of alias and mac calculation key from the Nexi website

Paypal: main functionalities

7 million companies worldwide have already chosen to use PayPal. One of the reasons for the popularity of PayPal is its ease of use: PayPal uses the financial infrastructures already existing in the bank accounts and credit card systems to create a global payment system in real time. Regarding the use of PayPal on e-commerce websites, there is a fee every time PayPal is used; this fee depends on the volume of sales.

Purchase Protection System

The service also includes a purchase protection for clients: if the purchased item is not delivered or does not match the description of the seller, the client is fully reimbursed, including shipping costs.

24/7 Security

Security is PayPal’s priority: the fraud prevention system analyzes each transaction. Experts are available 24/7 to provide support via email or phone.

For this reason, an increasing number of clients trusts this payment system over others.

Configuration

First of all, it is necessary to register to the PayPal website as a Business profile. Once the registration is completed, to link your profile to the website it is sufficient to access PayPal website to enter the dashboard.

From here, access the drop down menu TOOLS > CONFIGURE the BUSINESS account.

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API configuration from the Paypal website – step 1

You will be asked how you wish to integrate PayPal on your website, whether to choose a partner with pre-integrated PayPal (option A) or integrate PayPal through API (option B).
At this time, choose option A and click on Configure API access from the menu that will open.

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API configuration from the Paypal website – step 2

At this point, click on the API NVP/SOAP Integration, Manage API credentials.

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API configuration from the Paypal website – step 3

Here you will find three entries (API username, API password and signature) that will be requested on your e-commerce.

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credentials from the Paypal website – step 4

 

Instead, for those who are not familiar with the new technologies, there are other more traditional payment methods, such as COD and bank wire transfer.

Cash on Delivery

One of the payment methods that is fast becoming obsolete is cash on delivery. Up to 17% of online buysers in our country used to prefer this method, which collected payment at the time of arrival of the goods ordered, including shipping costs to be paid by the recipient. The company or agency handling the shipping service, (post office or courier) received the assignment by the shipper to cash in on its behalf the amount previously agreed in the purchase agreement established by the parties.

This method of payment is perfect for clients but not so much for the seller: not only it is risky for the goods, but it takes a long time for the seller to receive payment from the sale.

Bank wire transfer

At the end of the transaction on the website, the seller provide the banking data to wire transfer the amount due for the goods purchased. Upon receipt of the bank wire transfer (or of the receipt sent by the client) the seller ships the goods.

In this case, the issue is the time required to perform the bank wire transfer. However, using the modern Web Banking technique, the consumer can place an order online, connect to the bank website to perform the wire transfer and, right after, submit the electronic receipt to the seller.