Online shopping in Malaysia has gained much momentum in the past years. Malaysians spent a whopping RM 1.8 billion shopping online in 2010 and the figure is estimated to grow in excess of RM 5 billion in 2014: an approximate 35% increase each year.
More Malaysians have turned to shopping online for various reasons. The main being low prices, convenience, easy comparison and time saving. If you want to take advantage of this situation and set up your own online store, you may want to accept credit card or debit card payment as it is the most popular way buyers choose to pay for their purchases.
To accept credit card payments, you will need to sign up with an Online Payment Gateway Service. The most popular Online Payment Gateway Services in Malaysia are Paypal, iPay88, MOLPay (formally known as NBEPay) and Webcash.
To help you choose the most suitable payment getaway, take a look at some of the most popular Online Payment Gateway Services and what you can expect from them.
Fees: Credit card transaction fees at 3.4% + RM2 per transaction.
Withdrawal: No frequency limit. Withdrawal fee is RM3 if amount less than RM400.
FPX/Malaysian Online bank transfer: Not available.
Fees: Credit card transaction fees at 4%. Withdrawal: Once a week. FPX/Malaysian Online bank transfer:** Available at a fee of 2% the amount transferred.
Fees: Credit card transaction fees at 3% (SME plan) and 4% (SOHO plan). Annual fee is RM500 for SME Plan and free for SOHO plan.
Withdrawal: Once a week.
FPX/Malaysian Online bank transfer: Available at a fee of 4% the amount transferred.
Fees: Setup fee is RM400 (Premium account) and RM499 (Lite account). Credit card setup fee is RM900. Credit card transaction fees at 3% (Premium) and 3.8% (Lite). Annual fee is RM499 for Premium account and RM99 for Lite Account.
Withdrawal: Once a week at a fee of RM2.
FPX/Malaysian Online bank transfer: Available at a fee of 3% (Premium) and 3.8% (Lite) of the amount transferred.
Other than transaction fees, one thing to remember before choosing an Online Payment Gateway Services is whether it integrates with your shopping cart software. In this area, Paypal has an advantage over other payment getaways because most of the shopping cart software available in the market support the use of Paypal.
For other payment getaways, do ask about cart integration before you sign up.
This article was written by the founder of 1-million-dollar-blog. He also operates multiple online stores.