e-commerce in jordan

Salam Ghada,

To simplify these stuff to you, since you are newbie in this field and to minimize your entry cost and risk to your business, I would recommend the following solutions:

• 2checkout (http://www.2checkout.com) It's 3rd party online payment solution suites SMEs that need to start selling online safely and in easy way. The setup cost for this solution is very minimal even the technical implementation can anyone with intermediate level of web development can do it for you. This solution is very suitable for new entry business since it protects from online fraud because of their long black list they have about online fraudsters, also they have number of online payment security and fraud protection with automated process from their side to protect the customer and merchant in same time. Since you are an international client they will ask your business license registration document, and some personal identities documents like passport.

• ClickandBuy (http://clickandbuy.com) It's a European 3rd party online payment solution and they support big brands in online payment solutions, also they have good quality of payment solution with high security standards. Also this service would fit your business and they ask the some documents about your business and personal identity. The commision scheme they offer much more better than 2checkout since you can save more money if you are selling well, while 2checkout they one rate fits all. Regarding the technical implementation you need a good developers to do it since they have extensive technical details but its worth using this payment service to your online store, plus they offer more than 20 card types.

• MoneyBookers (http://www.moneybookers.com) Very popular 3rd party payment service similar like 2checkout, also they offer easy to implement payment solution with number of card types. But if most of your clients from the Middle East region maybe they will face some difficulties in paying online. So you need to consider where your most customers belong. They offer flexible commission scheme which is very good if you are selling very well.

Some tips when you choose your payment solution: 1. Think about your business capacity requirements. If you are newbie and small business better to use 3rd party solutions not direct payment gateways with merchant accounts. 2. Always think about minimal risk to your business, so choose the payment solution who offers the best payment security tech and fraud protection, because you can easily lose your business in few months. 3. Variety of payment options offered by the payment service supplier, Visa and MasterCard sometimes are not enough. This is depend where your customers belong, customers in Arab world most of them using Visa & MasterCard but in Europe is different and in japan is different also. 4. Control level of your daily operation, some payment solutions don't offer enough control to you to manage the transactions by monitoring, void, cancelling, refund...etc. You need to have control because it's your money. 5. Get the best service, the local payment solutions like in Jordan, UAE and other Arab countries the customer support level is unsatisfied and didn't reach the level to support your business, which I recommend to work with international brand that would appreciate your business.

Regarding STS solution is complicated and costly and doesn't offer you the control you need to protect yourself and manage your daily operation work.

Good luck with your online store! Qais

Salam Ghada,

I agree with you, that using a payment gateway in your online store makes the shopping experience smooth and consistent but the regional payment gateways are not up to the e-commerce expectations.

Regarding 2checkout integration it offers payment experience same like payment gateway using shopping carts solutions and you can find at their site a big list of shopping carts they support, the integrated shopping carts offer smooth payment experience to the user.

Regarding ClickandBuy, yes they do offers API and they give you these details after they approve your merchant application.

I used before payment gateways like LinkPoint and Authorize.NET with US merchant accounts but as I told you to make it safer business I would recommend to have a partner in US with US nationality to get these done for you, forget about the agencies they are blood-suckers and can't help you when your US merchant bank get frozen.

Since you are new to the business, start with 2checkout and after you found yourself you are doing very good sales and ready to upgrade the payment experience then go to better services. Also 2checkout is good option for first time customers unlike ClickandBuy, ClickandBuy force the first time customer to register similar to PayPal method which sometimes can contribute to abandon sales.

Thank you, Qais

Dear Ghada,

It is usually advised to choose a local payment gateway provider. We currently have in Jordan a payment gateway called Paynet which is a joint venture between Visa Jordan and STS. Unfortunately Paynet only accepts Visa cards at the time being thus narrowing down your revenue streams that might be generated from Master Card, American Express and other internationally accepted cards. You do have an option which is 2checkout. They accept all kinds of credit cards but they do charge a 5.5% and a 0.46$ per transaction. Having said that, the need for a fully equipped and functional payment gateways are very much needed in Jordan and the region as a whole. I'm sure once one is in place e-commerce in our part of the world will thrive.

Fayek

Ghada, great question & Qais, great answer! thanks.

I believe none of the payment gateways you mentioned allow on-site payments. For example, if I want my user to add credit cards and pay on my Website, what options do I have?

I've done that with PayPal Payments Pro for Woopra, but Woopra and its bank account are both based in the United States. Some other providers that allow you to do that is Authorize.net! Both gateways require your presence in the the US or Canada.

I'd love to hear more opinions regarding this matter since it's a key component for the success of many startups in the region.

Salam Elie,

Yes, these solutions are not for on-site payments, this is why it's called 3rd party services. On-Site payment solutions required to have US bank merchant account and it's doable but after Sept 11 any requests made from Middle East will be questioned and not approved, plus you will be threaten to not receive your money because some Gov-agencies will freeze your account for Anti-Terrorism reasons.

3rd party solutions are the best & safest solutions for SMEs. I am sharing my experience with you guys.

Thanks, Qais

Marhaba,

i've heard of NetCommerce, http://www.netcommerce.com.lb/ for Lebanon, if anyone has tried it, please comment. Thx! Riad

PS : also used by some offline merchants to pre-authorize credit cards, hotel bookings for example. Not sure if it extends outside LB, I doubt it.

Hey Riyad,

Netcommerce is still basic online payments survive, you need to have a registered company if you want to add this survive into your ecommerce website. so its not available for individuals. and the Fees (from 2 years) am speaking were so high even more than paypal. it i was 10% or something i thing.

And its like the .lb you need to submit your application and than wait for week or tow to get the confirmation. and i think its only for the Lebanese companies. but till now its seems that its the only way to trade online in Lebanon . or you can work with monybookers it works in Lebanon .

So are there no major Middle Eastern online payment solutions that can minimize the expenses of doing ecommerce in this region? Middle Eastern ecommerce sites are forced to use U.S. payment solutions?

I know Alertpay.com is said to be the PayPal of Africa.

I just found http://www.credimax.com.bh of Bahrain.