KEY POINTS:
In the week before Christmas, as shoppers were wrapping up the last of their gift buying, Mark Fell quietly watched his new online store go live.
Fell describes it as the scariest moment in a six month project to launch the Haemata web store, an online business selling Maori language educational products.
The online store is the latest extension of the Wellington-based company Fell has run with partner Hineihaea Murphy since 1999.
Off-line, Haemata - meaning 'strong growing' - provides a range of educational services including language tutoring, translation, resource development, and professional development for teachers.
They found they were constantly fielding enquiries from schools asking where to get Maori language resources.
"When you wanted to get Maori language resources you had to go to individual producers to find them and for a lot of people it's really hard to locate them," said Fell.
Haemata's online store is now a one-stop-shop stocking Piri Paua, their own brand of baby linen, as well as books, music and games from a range of suppliers.
Fell said they were able to draw on their experience with content management systems to develop the website but adding the payment service - they used WorldPay - took time.
"You're working with offshore companies, so you just have to make sure you've got that part right in terms of the linkages and making sure our site links into their site properly and that whole system works," said Fell.
Guide to online payments
Lee Blair, the manager of New Zealand Trade and Enterprises e-business guide, said establishing a merchant account - the account needed to process credit card payments - can be the biggest job for new online businesses.
Blair said people with an established retailing business should approach the bank they have an existing relationship with to assist when going online.
She said that bank will see you as already having credibility and integrity in your processes, which makes a big difference when setting up a merchant account.
"If you don't, you will need to go with the likes of WorldPay or PayPal who have a merchant account included in their offering."
Blair said potential e-tailers needed to take the time to check out all the options for payment services.
"Always go for three options, always go for three quotes. You don't know what you don't know until you get out there and look into it," said Blair.
People wishing to establish an online business or existing online businesses seeking information can receive tailored advice by registering on NZTE's newly revised e-business website.
Things to take into account when setting up an online payments system:
* A merchant account - allows business to accept electronic payments including credit cards, debit cards and gift cards.
* Payment gateway provider - an e-commerce service that authorises payments for e-businesses and online retailers.
* Multi-currency requirements - currently only the Bank of New Zealand offers sales transactions in a range of overseas currencies. The ANZ can process sales in New Zealand and Australian dollars.
* Shopping cart facilities - the software that allows online customers to select items and calculates a total for the order, including postage, packing and any applicable taxes.
* Integration software - the software that connects together the computer systems running behind the website.
* Payment volumes - fees will apply for the merchant account, payment gateway service and credit card transactions. Expected transaction volumes will determine what plan you select.
* Charge-backs - the selected payment service needs to have the ability to track and report on charge-backs in case the bank/credit card provider reverses a transaction disputed by a customer. Sometimes the lag time can be quite long, particularly for international credit cards.
* Support - what happens if the solution breaks and how easy it will be to receive support? How quickly will you be up and running again?
* Settlement - check the fine print to determine when sales funds will be available. Some services have a lag of up to six weeks between a transaction and funds becoming available to the e-tailer.
* Security - how secure is system?
