Technical problem with payment gateway
It is not cost-effective for individual merchant to setup a technical team to build a secure infrastructure (hardware and software) that handles online payment and fraud-prevention.

Transaction overhead
Each transaction will be charged a transaction fee or transaction rate and this might squeeze the profit margin of some merchants, especially the retailers.

In 2004, total credit card purchases in Malaysia by local cardholders increased by 20% from the previous year. Credit cards circulation has enjoyed favourable growth in Malaysia; from 1.56 million cards in 1994, to 7.13 million cards as at 30 June 2005. The credit card penetration rate has also improved to approximately 26% of the population as at 31 December 2004, from 18% as at 31 December 2002. However, the credit card penetration rate is still relatively low. The growing number of credit card issued in Malaysia will, however, encourage retail merchants to offer credit card payment facilities to consumers.

Online Payment Revenue of CUTI.com.my

Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer. You also can download some browsers for free over the Internet. When submitting your purchase information, look for the “lock” icon on the browser’s status bar, and the phrase “https” in the URL address for a website, to be sure your information is secure during transmission.

To collect payments over the internet, you need an internet merchant account or an online payment gateway. If you already have a shopping cart package, ensure that the payment gateway service is compatible. There are many payment gateways available and many costs which are difficult to ascertain or calculate, you may need to compare the costs of various service providers.

Following are the costs which payment gateway companies usually charge. Some payment gateway companies offer free set-up and some offer zero maintenance fee. This depends upon the service scheme that you are opting for.

1. Application fee - some institutions will charge you for the privilege of applying for an account, regardless of whether your application is successful or not.
2. Setup fee - once your application has been approved, there may be other fees associated with establishing the account.
3. Discount Rate - a percentage deducted for each product sold
4. Transaction - added to the discount rate, a flat rate on each transaction
5. Monthly Minimum - what you will be charge regardless of the level of sales each month
6. Deposit - some providers require you to maintain a certain level in the account to cover chargeback fees.
7. Chargeback - the killer fee which may cost you up to US$30 per fraudulent transaction (which includes any client disputing a transaction successfully).

Merchants are able to use WorldPay or PayPal if they have a bank account in Singapore. Both service providers are using Singapore Dollar as they transaction currency. To set up a WorldPay internet merchant account, you need to pay for SGD250 as setup fee and monthly fee at SGD650. The transaction fee is 4% of each transaction.

No monthly fees and no setup fees for PayPal merchant. However, a transaction of 1.9% to 2.9% + $0.30 USD will be charged for each transaction.

PayPal requires payer to signup as member in order to make payment online.

• MOTO: Mail order/telephone order. A payment terminal is required at merchant site in order to enter the credit card/charge card details that sent via an encrypted e-mail using PGP technology, the most secure encoding method in the World. The merchant needs a private key and an associated password to read the card details.
• Online and real-time transaction
• Malaysia ( Maybank2u E-Merchant Debit Payment , Mobile Money Weblink, NBepay, Commerce Payment & etc)
• Taiwan , R.O.C. (NeWeb, ezPay, EzRun, FreePay, TWV, GreenWorld & etc.)
• International (WorldPay, 2CheckOut, PayPal)

• Offline
• ATM transfer, Internet banking, bank in, Telegraphic Transfer (TT), Letter of Credit (L/C), Cash on delivery (COD), bank draft and money order.