If you are interested in starting an e-commerce business in Singapore, you should consider setting up an internet merchant account in Singapore. Here are a few factors you need to know before setting up your own internet merchant account.
What Exactly Is A Merchant Account?
- A merchant account is a type of commercial bank account that allows a company to accept and process credit card payments. Merchant accounts necessitate a partnership between a company and a merchant bank, which enables all interactions in an electronic payment transaction.
- Relationships with merchant accounts are vital for internet businesses. These account partnerships incur additional charges, which some brick-and-mortar companies may opt to avoid by just accepting cash for deposits in a conventional business deposit account.
Internet Merchant Account VS. Traditional Merchant Account
- Even though internet merchants have surged, many traditional merchant account providers continue to focus primarily on in-person transactions. However, as an online merchant, your requirements are somewhat different. An internet merchant account, often known as an online merchant account, focuses on eCommerce tools and services.
- This includes a payment gateway. Certain online merchant account providers may also give you the option of a shopping cart or online store. Furthermore, you should anticipate your internet merchant account to be compatible with key eCommerce software suppliers, such as shopping carts, subscription software, and marketing tools.
WHAT IS AN INTERNET MERCHANT ACCOUNT IN SINGAPORE?
- An internet merchant account in Singapore is similar to a business bank account in Singapore, where it allows your business establishment, whether small or large, to process electronic payments in Singapore for your goods or services.
- A merchant account in Singapore enables your company to start accepting credit card payments and/or other sorts of electronic payments.
KEY FEATURES OF AN INTERNET MERCHANT ACCOUNT IN SINGAPORE
- Seamless payment flows
- The vendor is legally protected because no customer credit card information is handled in-house.
- International card processors such as Visa and MasterCard are available in various currencies like HKD, AUD, SGD, USD, EURO, HKD, etc.
- Access to multiple payment options such as online gateway, MOTO payment, mPOS, etc
- Convenient and swift checkout.
Why Should I Set Up An Online Merchant Account In Singapore?
- Real-time data.
- Use the most up-to-date plugin and extension to meet your global customers’ Financial Services demands.
- All costs are presented in one location (across various payment types/risk levels/countries/times/and currencies).
- For Business Management, a user dashboard with analytic tools is provided.
- Increased Sales Volume using a Virtual Terminal.
- There will be no more paperwork, unexpected fines, or complex PCI compliance requirements.
- More platforms that take payments in a split second and provide vital functionality.
E-COMMERCE PAYMENT OPTIONS FOR ONLINE BUSINESSES IN SINGAPORE
With the rise of e-commerce, the most prevalent means of collecting credit card payments are either through a payment gateway account (also known as a third-party merchant) or through your merchant account, which will also need a payment gateway account to process payments. The main payment options for online businesses in Singapore are as follows: –
1. Creating a merchant account
An internet merchant account, which is a line of credit provided by the bank, allows an e-commerce business to accept credit card payments. While you may open a merchant account with your bank, it’s always a good idea to browse around for cheaper rates. For example, DBS and Standard Chartered banks provide merchant accounts which can be seen below: –
DBS Bank also offers its merchant payment solution for e-commerce in Singapore. It is available through recognized gateways to provide online payments, mail order telephone order (MOTO), and batch processing services.
The service enables real-time transaction processing and certification; all funds are set in Singapore dollars. The rates also vary according to the needs of the business.
Standard Chartered Bank and First Data have joined forces to enable Singapore merchants to accept online payments, which may be linked to the merchant’s website without the need for further software installation.
Merchants may customize their payment pages and receive Visa and Mastercard secure seals at no extra cost.
As the global leader in online payment solutions, PayPal provides two options for merchants.
Standardized website payments
It’s simple to collect credit cards securely online by including Paypal payment codes on your website. The merchant may take all major credit cards, debit cards, and bank transfers after installing the system on its website.
Notably, there are no transaction fees and no need for a separate merchant account or payment gateway.
An all-in-one solution in which customers who pay by credit card remain on your website during the transaction, while PayPal remains invisible.
Payment Pro offers functionality similar to merchant accounts and gateways at a lower cost.
2. Setting up third-party merchants (Payment gateway account)
NETS is the most popular e-payment method in Singapore, with one in every three persons utilizing it daily. It is owned by Singapore’s three main banks, DBS Bank, OCBC Bank, and United Overseas Bank (UOB), and the Monetary Authority of Singapore (MAS) has classified it as a national payment system.
In terms of e-commerce, NETS offers two main forms of services: –
A payment gateway that takes credit and debit card payments as well as direct debit.
Merchant Collection Services
A payment gateway that accepts payments through online banking and NETS kiosks.
In Singapore, Telemoney Electronic Payments provides this service, allowing merchants to take credit cards and set up regular payments using Wirecard AG.
The service is commonly used for mobile commerce, bill payments, remittance, taxi payments, toll payments, and other similar transactions,
Global Trading Pay
Also known as GT Pay, it is a Singapore-based developer of e-commerce payment solutions that takes major credit cards such as MasterCard, Visa, AMEX, and JCB, as well as payments via AliPay and Union Pay.
Merchants do not require a merchant bank account to receive payments because GTPay is a payment processor.
Asia Pay is one of Asia’s major online payment processors, offering a variety of online payment solutions such as mobile payments, e-vouchers, recurring payments, virtual terminals (MOTO), pre-payment, gaming payment, retail payment, and batch processing.
Even though the payment gateway setup takes roughly two to three weeks, this one-stop electronic payment service provider is quite popular among businesses in Singapore, Thailand, China, India, Vietnam, the Philippines, Taiwan, and Hong Kong.
KEY ADVANTAGES FOR BOTH MERCHANT AND THIRD-PARTY ACCOUNTS
The advantages for both merchant and third-party accounts are as follows: –
Advantages of a merchant account
- Ease of transaction
- Fraud protection
- Merchant retains control
- Faster payments
Advantages of a third-party account
- Approvals are not needed
- Disputes are handled mutually
Want to know more about internet merchant accounts in Singapore? Here at Relin Consultants, we have certified specialists when it comes to complex topics such as internet merchant accounts. Give us a call at +65 8756 2027 to talk to our agents.
Is A Merchant Account Required To Sell Online?
You’ll need a merchant account for online sales if you wish to utilize a payment gateway to conduct transactions from your website. Payment gateways link customers who want to pay with a bank or merchant account provider who handles the transaction.
How Can I Accept Payments If I Don’t Have A Merchant Account?
Without a merchant account, you may accept credit cards in the same way that many modern businesses do, which is via a payment service provider.
How Much Time Does It Take To Open A Merchant Account?
The merchant account approval procedure differs depending on the supplier and your organization’s specifics. It usually takes one to two weeks. Contact us to obtain a more specific timeline for your organization.