URGENT HELP REQUIRED - Card Payments

#1

Guys I need your help ASAP and it may affect quite a few on here.

Please do NOT make this discussion about Brexit or EU Rules but kindly stick to PSD2 ONLY.

PSD2 states that ALL card payments (credit or debit) have to have two step authentication to prevent fraud and money laundering within Europe and Including UK even after “Brexit” to accept payment on any card - debit or credit after deadline. PayPal have stated quite clearly that without this they WILL NOT accept any card payments.

I use @Cartloom and have done for many years, I wish to continue using them going forward, however I have a problem and I am working with them as they are BRILLIANT and always been of great help to me.

I have a successful e-commerce business and I accept PayPal and Card payments, to make my life easier I chose PayPal as my merchant banker so I only needed one set up and they (PayPal) sent me the below over two months ago.

As a business accepting card payments, your online checkout will need to be upgraded to comply with PSD2, a new European Union directive that requires Strong Customer Authentication (SCA). The directive applies from 14 September 2019, but card issuers are working towards SCA by April so that their systems are fully operational by the deadline.

Cartloom and now come back to me yesterday and say they most probably won’t have the API integrated by deadline so I now have a business decision to make. They hope to have Stripe integration but don’t have that at present.

I am therefore asking for your advice please:

  • Do you use Cartloom and who is your merchant banker?
  • Have you checked with Cartloom to see whether they are integrated?
  • If you do not use Cartloom what do you use and are they accredited in your software you use?
  • What is the best non Cartloom programme you have integrated into RW?

My dilemma now is I am going to have to change my site to have a merchant banker and PayPal as I accept both methods of payment. Stripe does not integrate with PayPal - Is this correct?

This affects ALL people who accept card payments to sell in Europe and UK irrespective of where they are based e.g. USA so its a collective problem and that’s why as always I know someone out there will have an answer that can help.

THANKS in advance

Paul

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#2

Anyone out there that can help?

#3

I’ve never used Cartloom so I cannot comment on that, but I am wondering why you cannot use a billing company that is compliant with the various regulations and handles all of this for you?

Companies like Fastspring, Ecwid or Stripe will almost certain make sure their systems are compliant at the right time and you just add the line of code for the shopping cart. Fastspring’s setup is a bit fiddly, but extremely capable and I built a site last year using Gumroad that was dead easy to integrate. All of these will no doubt handle PayPal, credit cards and other payments methods.

In the case of Fastspring they take care of the EU VAT and GDPR as well at the cart stage. Leaving politics aside, going through Fastspring is a bit more expensive than when I used PayPal, but it saves a huge amount of time and stress complying with this never ending stream of bureaucratic hurdles. It is proving ever more difficult to make online sales with these restrictions and far too burdensome for the small seller to manage.

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#4

@ashleykaryl Thanks for your response. PayPal is my merchant and does cards and PayPal payments no problem and its is PSD2 compliant. I can only say that the ones you mention that Stripe is NOT at present and the API for making it to developers is not done and is expected end of July. Cartloom is my shop and all my SKU’s are listed here and its worked no problem for years and still does. However it is not compliant with any merchants yet! The problem seems to be the merchants are holding back and until the developers get the API from them to programme into their carts then everyone who uses RW to sell in UK and Europe will see their payments stop in September which is NOT good for business.

#5

Use Paddle then:

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#6

I gave up on PayPal long ago, because they couldn’t handle the EU VAT adequately and moved to Fastspring. I wouldn’t be surprised if these billing companies are deliberately withholding the API at this stage, but that’s just a guess.

In a sense what you are saying makes my initial point more valid in choosing a suitable billing company that removes the reliance on plugins. I would fire off emails to the likes of Fastspring and alternatives to see if they are ready. I don’t know what what you are selling and I haven’t used them for years, but it may be worth looking at e-junkie. The last time I looked at Paddle it seemed very focussed on software.

First we had the cookie law, then EU VAT and GDPR; now this as well. It seems clear to me the bureaucrats are intent on making everything as difficult as possible for small online sellers. Realistically, you either need to go through a billing company that keeps on top of these things or rely on platforms like Amazon.

#7

This may or may not be relevant to this…

I use Stripe for a lot of recurring payments, I’ve just been sent an invite to a webinar they are running about SCA and recurring payments.

Perhaps they are going to run one for other types of payments, perhaps they have their API ready now?

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#8

@ashleykaryl thanks for your response. This law has been around in a similar guise within UK for a few years. If you take out any credit or deal with HMRC for first time e.g, new employee, you have had to provide pictorial evidence and address proof. This is to stop money laundering and now applies to online sales too.
I distribute and sell disabled and preventative DVT devices and I would never sell them on Amazon myself as markup is just ripping people off. I give best price direct from website. Please look at compression.solutions site for an idea of what I do.
As I do my own RW websites I have always used Cartloom for shop and PayPal as merchant. I have used this combination for years and never had a problem so that’s why I don’t really want to change.
Cheers
Paul

#9

@steveb thanks for this info I’ll watch out for outcomes. Have a great day! Paul

#10

OK I hope you find a suitable solution. When you go through a billing company the customer is buying from them, rather than you. They are basically resellers and that’s why the terms of business are effectively determined by the billing company for both you and the end buyer.

It is also the responsibility of the billing company to maintain legal compliance with the various regulations around the world.

#11

It’s here @PaulM :

I’m planning to be on this webinar too :)