1 BPW International
Chonchanok Viravan, BPW International President
Guideline for E-Commerce Merchants
แนะแนวผูประกอบการในการทําการคาแบบพาณิชยอิเล็กทรอนิกส
By
Dr. Chonchanok Viravan, President BPW International United Nations Convention Center,
Bangkok, Thailand 15 December 2006
1. Know where to begin
1. Know where to begin
Where to begin depend on your own status:
• Individual, don’t know Internet?
• Individual, not yet own a business?
• SME Business owner, not yet have web site?
• Enterprise with web site & back office?
• Entrepreneur with bright ideas on how to do
special e-service online?
3 BPW International
Chonchanok Viravan, BPW International President
2. Check your Business Model
2. Check your Business Model
– Does it require additional registration / or certification?
– Is it legal?
– Is it permitted by rules and regulation of credit card companies?
– Is it really financially viable?
For example, the cost of shipping can exceed the cost of goods.
Examples of improper
Examples of improper
and/or illegal e
and/or illegal e
-
-
business
business
•Sell tobacco.
• Sell prescription drugs or illegal drug.
• Sell child pornography. • Sell goods or services in
violation of Intellectual Property Right.
•Gambling • Sex trade
• Money laundering • Any illegal business
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Chonchanok Viravan, BPW International President
3. Design the web site properly
3. Design the web site properly
• Offer multiple languages web site (at least local language + English).
• Web site should be develop in ways that it is easy to find with search tool.
• Easy to access goods and services with a few click. • Must display Business contact address
• Term and condition and policy must be be available.
4. Operating E
4. Operating E
-Business
-
Business
• MARKETING & e-Marketing: Crucial success factors! • Keep information and online catalog up-to-date
• Offer Online customer services.
• Back Office: Handle online inquiry, online complaint, fraud detection.
• Keep up-to-date with laws, rules and regulations regarding e-Commerce.
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Chonchanok Viravan, BPW International President
5. Add Payment Gateway
5. Add Payment Gateway
• Accept payment via credit card online:
– The service is provided by banks, financial institution or Third Party Provider with fee. – Negotiate fee (Merchant Discount Rate - MDR). – Usually require merchant to put up security
deposit.
• Get service from “legal” or “properly
registered provider”.
6. Manage the Payment Online
6. Manage the Payment Online
• Good practice:
– Don’t create your own payment page on top of bank payment gateway service!
• Authenticate card owners, with extra security such as
CVV checking
, match shipping and credit card address, etc.9 BPW International
Chonchanok Viravan, BPW International President
7. Handle Fraud / Chargeback
7. Handle Fraud / Chargeback
• Situation: E-Commerce customers disputed that he/she did not make the purchase, even after the goods are shipped and services have been render. As a result, chargeback occurs.
• Merchant is usually liable, not the bank. So the acquiring bank can take back the money it advanced to the merchant at the time the payment was settle.
7.1 Reduce chargeback
7.1 Reduce chargeback
• Register Payment Gateway Service that offer:
– Verified by Visa (VbV) – MasterCard Secure Code
These services would offer additional authentication of card holders. Buyers cannot deny making the purchase.
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Chonchanok Viravan, BPW International President
7.2 Reduce Fraud
7.2 Reduce Fraud
– Dedicate staff to monitor transaction to detect fraud. – Track Fraud-to-Gross Sale performance.
– Establish fraud database
• Record similar patterns and identify same person or group by nationality, shipping addresses, telephone numbers, card numbers
– Check validity of • phone no (caller id)
• physical address (postal code) • email address (order confirmation) • contact customer
7.3 Reduce Chance for Hacking
7.3 Reduce Chance for Hacking
– Don’t keep sensitive information worth hacking for, like your customers credit cards numbers. – Assess security of your computer and network. – Initial free online assessment are available at
www.scanalert.com
– Get Payment Card Industry (PCI) Certified. (This can be expensive).
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Chonchanok Viravan, BPW International President
7.4 Avoid unnecessary disaster
7.4 Avoid unnecessary disaster
READ YOUR CONTRACT FOR
PAYMENT GATEWAY SERVICE CAREFULLY! E-Commerce merchant may face liabilities, suspension, termination, penalties as stated in the contract between payment gateway service provider and the merchant. Some known regulations of the bank, the credit card companies and the law may be embedded in the contract.
8. Measure Performance
8. Measure Performance
• Measure the performance of web site:
– Page Views – Number of Visits – Conversion rate
• Identify potential problems in certain part of a
web site and solve them.
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Chonchanok Viravan, BPW International President
9. After Sale Services
9. After Sale Services
Like any business, need people to handle:
• Return goods / Refund
• Disputes in payment.
• Customer complaints
• Survey of customer satisfaction
ADVISE
ADVISE
• Internet, if use wisely, can help business save
a lot of money as well make a lot of money.
• Always, Always, Always - Be careful.
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Chonchanok Viravan, BPW International President
