For some friends who are interested in venturing into online selling would wanna consider this, a new online payment system, Noca, which is claimed to have eliminated the few percents transaction fees that imposed by credit card companies.
The available online payment services or gateways such as PayPal, Google Checkout, or Amazon Flexible Payment Service all charge you a 2-3% (plus $0.30) as the transaction fees. The transaction fees are actually passed on by them from the credit card companies. And in most cases, merchants or vendors would also wanna pass it on to the shoppers by marking up the products 2-3% higher. But these days, selling online is getting more and more competitive, which would force merchants to swallow this little loss that lowers pretty much of their profit margins. Don’t look down upon the small percentage of loss only, it contributes as much as $5 billion a year loss in the United States alone.
Noca, the new online payment service, a startup by ex-Visa employees, virtually eliminates the transaction fees as they’re providing their own online payment services instead of relying on credit card companies. The move by Noca is aimed to attract more vendors to go online. And they also seek to provide the consumers with more rewarding and secured shopping experience.
Noca also has few other services such as implementing the micro payments, aiming to cater for online payment for all sizes of purchases. And they put more emphasize on the micro payments made through Facebook.
Noca has also launched two Facebook apps to support its micro payments, which are the OneClick Pay and HelpYourWorld. The former is for sending money to friends, such as sending digital checks which needs only your acc and routing numbers instead of using a credit card, which should be more secure. The latter, HelpYourWorld, solicits $1-at-a-time donations for a series of causes, it benefits greatly from Noca’s lack of transaction fees (especially the standard fixed one of $0.30). Noca hopes that many other Facebook applications with similar micro-payment needs will use its APIs to implement its payment service.
Besides, Noca also aims to provide strong and flexible incentives through cash back schemes, frequent flier miles, and the ability to designate a part of your payment to a charity of choice. And they promise of making their services much friendlier than others like PayPal, such as giving more comprehensive transaction history to consumers etc.
Noca is striving towards in becoming a credit card company by itself, providing best services for both the vendors and consumers.
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