This ecommerce web hosting guide provides a useful insight into the various components that are associated with operating an ecommerce web site. We cover the following topics:

• Introduction
• Credit card transactions (merchant banks and payment gateways)
• Web server certificates
• Shopping cart software
• Bandwidth issues
• The bottom line.

Introduction
Digital commerce or ecommerce describes any kind of business transaction or exchange made electronically. The most common products currently bought on-line include books, music, software and clothes. Often, for higher priced purchases, customers do not actually purchase via the Web. However, a web site can provide access to the information customers need to make decisions and direct them to their nearest store or retailer.

Credit Card Transactions (merchant banks and payment gateways)
Secure transactions are vital to the success of ecommerce sites. Despite the claims of the mainstream press the Internet is probably the safest place to use a credit card. In most cases the company being paid by credit card doesn't see your card number as this process is handled by one of the main Banks or Payment Gateways.

Ecommerce sites need to be able to accept credit card details, particularly sites that will be taking orders internationally. To trade on-line you will need to acquire a Merchant account. If you have an existing business and merchant account the transition to ecommerce trader will be relatively easy, if however, you do not have a "bricks & mortar business" the transition can be more complex.

Merchant Banks, require a risk assessment before establishing whether or not you are responsible enough and trustworthy before providing you with a Merchant account, which will allow you to accept credit card payments.

Banks usually guarantee card payment for transactions provided that the merchant carries out certain security measures, one of which includes checking the cardholders signature. However most web merchants/stores do not acquire the customer's signature before a sale is made.

Acquiring banks treat Internet transactions in a similar manner to mail, telephone or fax orders. When a customer, their credit card, and the merchant are not present together at the time of the transaction, it is referred to as CNP, Cardholder Not Present. Although a transaction may be processed, CNP authorisation does not guarantee payment of the transaction. CNP authorisation confirms that the genuine cardholder has sufficient funds in their account and that the card has not been reported stolen. But CNP authorisation does not guarantee that the genuine cardholder is initiating the transaction.

Banks reserve the right to Charge-Back the value of the transaction to your bank account i.e. debit your account if the genuine cardholder successfully disputes a CNP transaction. A bank can dispute a transaction several months from the date of the transaction.

Charge-Backs are rare, but from a business perspective it is important you are aware it can happen. A high rate of Charge-Backs can lead to the termination of your Merchant account. As a consequence on-line merchants need to look at the processes they employ once an order is requested. You should always consider whether or not an order is valid/accepted before dispatch.

An important part of your web site's security is the knowledge and ability of your ecommerce web hosting provider. It is paramount they are able to set-up your ecommerce web hosting account securely, setting the right file, folder and server permissions where necessary.

Payment Gateway providers are a useful alternative to acquiring a Merchant account. The payment gateway will process credit card details for you, all orders are transferred to their site, card details are taken and sent for validation to the respective credit card company. This process only takes a couple of seconds, is completely automated and informs the customer that the transaction has been accepted or declined.

Throughout the entire process the customer is usually unaware that they are being dealt with by another company. The entire process is carried out with SSL encryption, secure transaction services, useful for reassuring your customers that their data is secure. The only downside to this process is that you have to pay an additional fee to the payment gateway for each transaction.

For further information on the above select merchant banks or payment gateways.

Web Server Certificates
Web Server Certificates or Digital IDs provide proof of authentication and security in the form of SSL, Secure Socket Layer, encryption. To trust your site customers must be certain that it is real and information they send you is secure and private. A server certificate shows customers that your site is authentic and is using SSL encryption, the standard protocol for secure web-based communications. Site visitors can check your personal/server ID (Seal) giving them the confidence to communicate and transact business with your site. You might know that your site is secure, but your customers need reassurance!

SSL encrypts all traffic between your web server and the customer's browser, using a unique session key. Each session key is used only once, during a single session with a single computer. Your site can communicate securely with any customer using an Internet browsers.

Bristol Link can assign a shared web server certificate to your web hosting account.

Shopping Cart Software
What options do you have when building a store / shopping cart? First of all you need to decide between desk-top software or a server based application. Desk-top software allows you to build your store off-line and then publish it to a server. The majority of desk-top software products use templates. Although the appearance of a template can be customised, your options are limited. Also, adding extra features to your shopping cart when needed is not possible, you have to wait for the next software upgrade to find out what features will be included.

Server-based applications are usually built whilst on-line and are easier to develop than desk-top software. Server-based applications can be fully customised, designed to your exact requirements and new features added as your shopping cart grows. If you want to process credit cards on-line and update product details from a database via your web browser this is the most effective solution.

One other option now available is server-based services. These pre-built stores offer you the opportunity to establish a site quickly and easily. However these services are based on a similar approach to desk-top software. You choose the look of your shopping cart from a number of templates / themes and then input product details. The entire process of building your store is carried out on-line through a third party to whom you pay a monthly fee for hosting your site.

Bandwidth Issues
If you intend to sell products directly over the Web it is vital that your ecommerce web hosting provider can provide your site with the bandwidth it requires. Successful sites can generate a lot of visitors/traffic, if this traffic is not managed correctly the performance/speed of your site will be seriously affected and so will your business. Therefore, we always recommend 'ecommerce' web site owners host their site with a specialist web hosting provider, like Bristol Link, rather than an Internet Service Provider.

The Bottom Line
Keep it simple, ecommerce is about making money, not how good your web designer is at creating complex graphics or their ability to use DHTML or Flash. Do not exclude site visitors because they do not have the right plug-ins or the latest version of browser.

It's essential you give your site visitors/customers the opportunity to buy directly through the site. Many business neglect this issue, only taking orders by mail or telephone. Imagine a trip to the supermarket only to find that there is no till to complete the process!

Update your site as regularly as possible. You've spent a great deal of money on building and establishing your site, do not throw it down the drain by not keeping the site up to date.

Include standard Terms & Conditions, a Privacy Policy, and if you are based in the UK, and collecting personal data relating to customers, or such information is publicly displayed, make sure you abide by the requirements of the Data Protection Act 1998.