Abby Ongyanco-Lim

A couple of months ago. I blogged about different online payment solutions for Filipino Merchant. Yes, there are actually a lot of solution providers popping up. But, there are some factors that hinders me from signing up with them.

1. High Rates - 5.5% - 6%
2. Transaction Fees - $0.45 - $0.60
3. Hold Amount
4. Too long settlement dates

Let me explain the factors above. High Rates - refers to the discount rate deducted from the total amount. Let’s say your price is P1000. You will be paid only P940.00 at 6% discount rate. Aside from the discount rate, transaction fees will also be deduected from the amount due. Sad to say, most transaction fees are in dollars so for a $0.60 that’s already P30.00. Meaning, for a sale of P1000.00 you will be paid P910.00 (less discount rate + transaction fees)

Other payment provider also has hold amount. This is a “protection” of the payment gateway provider against fraud. This means, they will not settle 100% of the amount due to you. They will hold 10%-20% of the amount, just in case there will be chargeback. Chargeback refers to complaint filed by credit card owners to the credit card company that the transaction is fraudulent. As a merchant, you better make sure that you have all the supporting documents supporting the sale/transaction. Like invoice, photocopy of government issued of the credit card holder, imprint of the credit card, plus signature of the credit card holder. If you don’t have this supporting documents. Credit card company will file the transaction as chargeback and you will be required to revert the money or else penalty will be incurred or your merchant account will be cancelled. Sometimes, merchant have hard time returning the money to payment providers. Thus, payment providers declare a hold amount of 10%-20% to protect themselves.

Last factor, too long settlement date. Being in the business, you have to roll your money. Thus, you need to get the amount due to you the soonest possible time.

Well good news to Filipino Merchant based in the Philippines. There’s a company who provide online payment solutions that has low discount rate, low transaction fee, no hold amount and 5-6 days settlement. — Try http://www.yossn.com

Actually, this blogging is long overdue already. I met YOSSN corp President Ms. Cannie May during one of digitalfilipino.com eyeball. Upon meeting Ms. Cannie in person, I never hesitated to do business with her company. I expressed my intent to her right there that I would like use her service for our online store and business. Well, it was an eyeball so we did not have much time to discuss details. As she was here in the Philippines for a short visit at that time, I thought maybe to continue the communication via email. But Alas, Ms. Janette Toral called a few weeks later setting up the meeting with Ms. Cannie May. That was the start of it. The discussion was swift as if we’ve known each other for a long time already. The following day, I met YOSSN’s Business Associate Wendell Tagros who is very accomodating.

After a couple of YMs and emails, we have successfully integrated YOSSN payment solution to our system. Ever since then, we’ve been using YOSSN payment solution and we’re happy with their service. Our biggest transaction so far is $7000. But, it was settled in time. So for all aspiring Filipino entrep who wishes to setup an online store. I would highly recommend you to try http://www.yossn.com