For the eCommerce merchant there are only three important things: site, connectivity and payments. This really crystallizes the essence of what every eCommerce company must obtain, if they expect to survive. Robert Fleming first voiced this to the author and he deserves credit for the concept.

So what does this mean to you? The three legs of the stool upon which YOU are perched are SITE (yours), CONNECTIVITY (yours) and PAYMENTS (your survival).

Fine, you already knew all that. Obviously, every merchant must display his or her goods and services in their best light (SITE). Clearly, every merchant has to find and communicate with the customers (CONNECTIVITY). Last and certainly not least, successful merchants must have a convenient way for the customer to buy (PAYMENT). If any of these three legs breaks or is too long or short, the stool will topple.

The most neglected leg is payment. This may sound trite, but it can't be said enough: Payment is the engine of commerce. In today's environment, the eCommerce merchant (I'm talking to you) has to understand and be prepared to defend their ability to accept payments.

Why do I say defend? We live in a world of consumer protection. Fraudsters and hackers use these rules for personal gain. Consumers are not especially alarmed because they get their money back and after all is said and done, the consumer just wants to feel secure. Enter the Card Associations, banks, legislatures and consumer protection industry. How do they make consumers feel more secure? By increasing requirements, rules and regulations, and advertising of course. The battle that ensues between eCommerce merchants and the world has become so complex and complicated that it requires you to gather all your resources to present a united front.

So what parts of the enterprise must be involved? Simply everyone who has "wants"! Finance wants low cost. Marketing wants unrestricted payment options. Legal wants it bullet proof. IT wants it simple and secure. Top Brass wants success rather than a continuous fire drill!

All of these constantly changing complicated considerations. Where to start? How to start? Am I there? These are the fundamental payment "leg" essentials that anyone at the top must address. The ten-step guide below will begin to lead you through the payment maze.

1. Determine your CISP merchant class from 1 to 4.

2. Understand the compliance requirements for your merchant CISP class.

3. Determine if each part of the transaction pathway is compliant including shopping cart, gateway and physical office.

4. Determine if the correct policies and procedures are written and deployed.

5. Make sure that qualified security experts test the system regularly.

6. Determine if your product(s) or MCC (Merchant Category Code) fall into risk categories 1 to 4 and the requirements associated with each.

7. Consider alternative payments, including ACH (Electronic checks)

8. Consider special payment options including Verified by VISA and SecureCode by MasterCard.

9. Construct a specification for bid by various vendors to perform all of the services required. Make sure that all bids are carefully benchmarked.

10. Monitor and react to processor statements and charges, chargebacks, disputes, credits and changing rules and considerations including those of cost, security, merchant CISP class and liability.

11. Regularly review and audit your payment system(s). Including areas of internal and external fraud with their associated breech points.

OK, I lied there are eleven steps. But the message is undeniable, failure to address this WILL SHUT YOU DOWN!

For a growing list of companies outsourcing or retaining the services of an independent unbiased payment expert has become the norm. The rules and regulations are changing too fast and are too complicated for all but the largest companies to develop the level of expertise needed to tame this monster.

How's THAT for a bottom-line?

More information is at: www.csrsi.com

© 2006 Ross Federgreen