Online payment gateways and the expediency of their use in small to medium-sized Internet shops in Ukraine

DOI

10.2991/smtesm-19.2019.38How to use a DOI?

Keywords

payment processing, internet payment gateway, transaction fee, chargeback, dispute handling, offline payment processing

Abstract

A very important aspect of a functional Internet store is the process of accepting payment for goods or services from customers. Payment methods can be classified online and offline. Major international and local Ukrainian payment gateways and their fees and features were analyzed. As a result threshold of a minimum monthly store turnover was defined, where offline manual payment processing is no longer reasonable. Best payment gateways by the different criteria were defined. Online and offline payment processing expenses for a small and medium-sized internet stores in Ukraine were estimated using a mathematical model that included average order value, monthly store sales amount, worker salary amount and manual transaction processing time. As a result, offline payment processing is less expensive for the most of the small and medium stores, and online payment processing is effective for stores with a large number of small orders. Despite having almost equal transaction fees, Ukrainian payment gateways have fewer features and less trust by the international customers, but the usage of the most international services are not possible in Ukraine because of legal issues.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuliya Peretiatko
AU  - Tetiana Klymenko
AU  - Alexander Sidorenko
PY  - 2019/09
DA  - 2019/09
TI  - Online payment gateways and the expediency of their use in small to medium-sized Internet shops in Ukraine
BT  - Proceedings of the 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019)
PB  - Atlantis Press
SP  - 191
EP  - 194
SN  - 2352-5428
UR  - https://doi.org/10.2991/smtesm-19.2019.38
DO  - 10.2991/smtesm-19.2019.38
ID  - Peretiatko2019/09
ER  -