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The e-commerce.

Processing payment before despatch


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The way I have set my site up means that customers wishing to pay by credit card have to make payment when they reach checkout to register the order. OSC sends my customers and my credit card processing company send them back to OSC to complete the order once payment details have been collected successfully.


Although this hasn't been a problem so far with all orders being despatched at least the next day - I have been aware of rumours about this actually conflicting with the current mail order law stating that goods must be despatched BEFORE taking payments.


Is this true?

Is this part of the law now (UK)?

How do you get around it using OSC?


Although this can help the retailer in some situations it appears to cause more problems:


What if you send the goods and the card is refused or is over the credit limit? :'(


Surely this rule would just create more fraud than before????


Any views welcome. It would appear to be a flaw in OSC if this is the case, although some merchant accounts do allow you to confirm despatch with them before they actually charge the card - a lot don't!

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I don't know if it is the law for certain - but I think it is. I'm fairly sure it comes under the Distance Selling Regulations.


You can sign up for an HSBC E-secure account, and install the module to integrate with that (major headache), and with this system the card is validated but the money is not deducted until you go to your HSBC Control Panel and update the item to shipped. Although it is fairly expensive (?200 one-off setup fee + ?20 a month plus 2.7 to 3.2% each transaction) it does also allow you to accept credit/debit card payments over the phone, and via a completed order form.



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What about payment processing methods such as Paypal or Nochex? I have looked into our card processing account and they mention changing the link.


We currently use a dynamic link (as with paypal etc) but to manually update the payment status we would need to use API and take credit card details ourselves using SSL.


Another hurdle for online traders to overcome. It's a wonder anyone actually gets started these days - everything seems to be working against you rather than with you.


Thanks or the reply :thumbsup:

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