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Online Payments in T&T: WiPay/PayWise vs FAC/Scotia/Fygaro— What’s the Difference?
One of the major decisions you’ll face when setting up an ecommerce store in Trinidad & Tobago, is how to accept online credit card payments.
Many are already familiar with options like WiPay, PayWise, First Atlantic Commerce (now Powertranz), Scotiabank, and Fygaro, which are all payment methods Forward Multimedia offers to clients, and which are fundamentally similar: they all allow customers to make online payments with local and foreign issued credit cards.
But behind the scenes, they operate in two very different ways, and choosing one over the other can affect everything from platform choices, approval time and fees, to scalability and control.
Understanding this difference early can save you time, money, and frustration.
The Two Main Payment Approaches
Basically, online payment systems in T&T fall into only two categories. But first, it would be helpful understand how online payment works using the offline Linx payment system we all use daily, as both are forms of electronic card payments.
When you visit any of T&T’s malls and make a store purchase, you’ll typically use your Linx card which you tap or insert into the store’s Linx machine. A verification process follows which you hold your breath for till you see the ‘Approved’ confirmation, after which you breathe a silent sigh of relief and collect your receipt.
Now, before this, you paid no never mind to what happens after you leave the store; you accept that the store got your money, and you would be correct. Being that the store’s Linx machine is linked (hence Linx) to their bank account, every transaction collects funds via your Linx card (which is linked to your bank account) and goes to the store’s bank account directly.
It is also useful to note that the store pays a monthly fee, essentially a rent, to the bank for the Linx machine (the bank owns the machine, not the store). Your Linx purchase of say $100 TTD is deposited or ‘settled’ to the store’s bank account net of the bank’s transaction fees, which is the cost of the convenience of facilitating an electronic payment. So you may pay $100 TTD from your card, but the store may end up with roughly $95 to $97 TTD of that, even less depending on the bank’s fee structure.
And if you check your own bank statement, you’ll also see you pay at least $1.50 TTD for every Linx transaction. And in a non-financial, fascinating pièce de résistance, both business owner and customer would also find themselves short at least a quarter pint of blood…
So to summarize the offline electronic payment process:
- Customer presents physical card for payment
- Card is verified/processed through the store’s Linx machine connected to their bank account
- Funds go directly to merchant bank account net of fees
If this analogy hasn’t confused you more, keep it in mind to understand below.
1. The Aggregator Model (WiPay/PayWise)
WiPay and PayWise use what’s known as the ‘Aggregator’ model. This model in our offline mall analogy, would have every store in the mall would be using a Linx machine that belongs to the the mall. That Linx machine will be connected to the mall’s bank account.
A payment aggregator is a third-party service provider that allows businesses to accept digital payments without their own merchant account. The aggregator acts as an intermediary, processing transactions, holding the funds centrally, then transferring to merchants.
For the sake of simplicity, imagine a mall with 10 stores and each store has a Linx machine connected to the mall’s bank account. If each store processes a purchase for $100 TTD, then the mall’s account collects $1,000 TTD (net of bank’s processing fees), which the mall then transfers via online banking to each store, minus an additional fee the mall keeps for providing the central Linx service.
PayPal works in a similar manner, which is of course the model WiPay/PayWise uses; the primary difference is that the merchant’s bank account is connected to PayPal via the credit card on file or connected through ACH. This allows funds to be automatically transferred when the merchant withdraws.
Here in T&T, your bank accounts are not connected WiPay and PayWise. When a merchant withdraws, someone in the office manually initiates an online transfer of the funds. It’s for this reason that there is a common complaint by WiPay customers that they have to wait weeks for their funds.
2. The Merchant Account Gateway Model (FAC/Scotiabank/Fygaro)
The merchant account model requires an application for such account at your bank, and requires a business bank account. This account is used to connect to the gateways like First Atlantic Commerce (Powertranz), Scotiabank’s eCom+, and Fygaro.
A merchant account is a specialized bank account that allows a business to accept and process electronic payments, such as credit cards, debit cards, and digital wallets. It acts as a temporary holding area where funds are safely kept while a transaction is authorized, cleared, and settled.
The primary advantage of this online payment option is the automatic and frequent (usually daily) transfers of collected funds.
Another advantage of a merchant account based payment system is its associated Merchant Portal. Scotiabank calls theirs a Virtual Terminal.
A Merchant Portal is a secure, web-based dashboard that allows businesses to manage their digital transactions, customer payments, and daily financial operations in one central hub.
This merchant portal is very useful as you’ll see all transactions instantly, even if the credit card payment fails. If a customer calls or messages you after a failed attempt, you can quickly check the portal yourself while they’re on the phone! Contrast this with WiPay/PayWise where you have no such feature, as only they have access to the merchant portal, and you’ll have to inquire from them via email, which will take days, even weeks to get a reply.
Each transaction provides great detail, including a ‘Response Code’ that you can tell the reason for the failure, which could indicate, say, a timeout (customer took too long to enter credit card number), or 3DS failure (customer entered wrong CVV number).
There are many useful features of the portal, like the ability to refund payments in full or partially, set up recurring payments etc.
The Two Main Integration Approaches
After you set up your account at any of the payment providers- WiPay/PayWise (you sign up directly) or through your bank (for the others), the next step is to connect the account with your online store, i.e. the payment integration. For this, there are also two (2) approaches.
1. Plug-in/extension integration
Depending on the online store platform you’re using, there may be what’s known as ‘plug-ins’ or ‘extensions’ available. These are pre-built applications that can be installed on your online store platform that allows your account to be integrated by a simply configuring a few fields.
To understand the need for plug-ins/extensions, imagine that you want to add a second monitor to your desktop computer set-up, but there’s only one port at the back of the computer that your first monitor is using. The only way to use a second monitor is to add second port. As you know, the back of any desktop computer, by default, has various ports to connect devices for different functionalities like printers, speakers etc., and if a certain port is not available, it can be added. Platform plug-ins/extensions are akin to these ports.
WiPay, PayWise, and Fygaro all have WordPress plug-ins that work with the WooCommerce shopping cart, that you can download from their sites. Once uploaded and activated, it’s a simple matter of connecting your account to start accepting credit card payments.
2. Direct integration
If no plug-ins/extensions are available, then the integration would need to be done by building your own application, which would require a developer. This is referred to as a ‘direct integration’.
Direct integration requires coding expertise as the developer will work directly with the gateway’s API to build a custom application. This involves using an initial ‘Test Account’ and simulating a variety of transactions with ‘test credit cards’ followed by the ‘Production Account’ and performing live card tests. It also involves setting up the email notifications and cross-referencing transaction IDs with customer orders. This is of course more expensive.
You can deduce that Powertranz and Scotia eCom+ have no plug-ins available and require direct integration with any platform.
The Two Main Shopping Cart Platforms
There are many ecommerce platforms you can use to build your online store. Most are DIY platforms known as ‘hosted’ platforms that you pay a monthly subscription for where all the technical aspects for maintenance and upkeep of the platform are out of your hands.
The other platforms are ‘open source’ platforms that are installed on third party hosts and managed by yourself (if you’re technically savvy enough) or by web design companies like us.
1. Open Source Online Store Platform- WordPress/WooCommerce
The platform is WordPress and without WooCommerce you just have a website. WordPress was initially designed for blogging, which evolved into websites, and then shopping. Many additional functionalities for the platform were introduced via plug-ins/extensions as explained above, which is what WooCommerce itself is- a plug-in that adds the shopping functionality.
By virtue of being open-source, ALL locally available payment gateways can work with WordPress.
2. Hosted Online Store Platform- Shopify
Shopify is the go-to DIY online store platform in Trinidad & Tobago. All others like Wix, Weebly, Squarespace etc., are very small in number and essentially negligible.
The limiting factor of the Shopify platform is it’s limited support of our locally available payment gateways. Forward Multimedia only provides integration services for two (2) gateways, and both are merchant account based:
- PowerTranz (FAC)
- Scotia eCom+
It is technically possible to integrate the others by using their API, but other factors come into play that make it best to leave alone. And if you’re going through the trouble to integrate a gateway, because Shopify doesn’t make it easy, it’s better to do it with premium gateways.
Quick Comparison
| Feature | WiPay/Paywise | FAC/Scotia | Fygaro |
|---|---|---|---|
| Merchant account required | No | Yes | Yes |
| Set-up time | Fast- less than 14 days | Longer- up to a month | Longer- up to a month |
| Approval process | Light | Strict | Strict |
| Platforms supported | WordPress only | WordPress, Shopify | WordPress only |
| Settlements | Manual | Automatic | Automatic |
| Integration | Plug-in (free) | Direct (fee) | Plug-in (fee) |
| Ease of use | Very simple | More structured | Simple |
| Monthly fees | No | Yes | Yes |
| Monthly fees cost | $0 | $30 - $75 USD/mth | $5 - $15 USD/mth |
Which should you choose?
The answer depends on where your business is right now and your long term goals. For the most part, established businesses doing robust volume should generally choose the merchant account based solutions, even though the process is cumbersome.
However, it’s also not a bad idea to start simple and test the waters. Note the term ‘test the waters’, not the Trini ‘try a ting‘.
In Forward Multimedia’s experience, online stores don’t get the volume of credit card payments they were hoping for. There are many reasons for that, and of course, every business is different.
When to choose WiPay or PayWise
If you need to start quickly and validate your online store, a simplified setup like WiPay or PayWise would make sense; it has the lowest barrier to entry. One of the best things about these methods, is how easy it is to walk away. To summarize a few:
- Low barrier to entry– any registered business can sign-up for free
- Simplified onboarding– no complicated validation process
- Free plug-in available– no additional integration cost
- No monthly fees– transaction fees only
- Easy to walk away– no loss of any upfront investment
Bear in mind that this is the lowest tier of online payment services. The ease of entry/exit and freeness will always have trade-offs, the main one being support.
This option is more suited for individuals and SME’s on a tight budget as it requires no upfront investment. Larger businesses that do not anticipate a high volume of credit card transactions, would find this more suitable. However, if you anticipate high value transactions, say in tens to hundreds of thousands, then you’ll prefer faster receipt of your funds. Generally it takes 10 to 14 days, even more, to withdraw from WiPay/PayWise.
When to choose PowerTranz, Scotia eCom+
If you’re thinking long-term, scaling sales, and optimizing costs, a merchant account setup is the better investment— as it is and investment; you have to be committed to your online store if you go down this route. Note that the advantages of WiPay/PayWise above would be the disadvantages of the merchant account based option which have inherent advantages:
- Faster settlements– usually daily and automatic
- Merchant portals– better transaction visibility & control
- Better support– you are a paying customer
- Banking relationship– generally closer and more customer oriented
Because of the ongoing banking relationship and the fact you’re paying monthly fees for Powertranz and Scotia eCom+, you generally get better support. Powertranz especially has an excellent support system.
When to choose Fygaro
Fygaro has a unique position as it is both merchant account based and has a WordPress plug-in. It’s also very affordable with monthly fee for the plug-in at $5 USD/mth.
Fygaro also has other features:
- Fygaro Shops– own shopping platform (like Shopify)
- Fygaro vPOS– tap to pay with your phone
With only the WordPress plug-in available, direct integration is required for all other platforms.
If you don’t mind the paperwork process for a merchant account, Fygaro would be a better option to start with over WiPay/PayWise. That is, if you have a WordPress/WooCommerce store of course.
Conclusion
Every business is different. The right payment solution depends on your choice of platform, products, pricing, and growth plans.
If you’re unsure which direction to take, we can guide you through the options and help you implement the right solution for your online store.
Help Docs
See our detailed guides to these major payment gateways.
