How much is the fee for convenience store payment? Key points when introducing payment

How much will it cost to introduce convenience store payment to an EC site? How will payments and payments be made? For e-commerce business operators who have such questions, we will explain in an easy-to-understand manner from the basic knowledge of convenience store payments to the points of introducing convenience store payments.

What is CVS Payment?

Convenience store payment is a payment service that allows customers to pay for products at major convenience stores nationwide using a specific number issued when they make a purchase on an e-commerce site.
It is the third most used payment method after credit card payment and online payment, and is used by over 15% of customers.

Payment methods often used in online shops (multiple answers)

Source: SB Payment Service "[2021 Edition] Survey on Payment Methods when Purchasing Goods at Online Shops" (December 2020)

A group of users who prefer convenience store payments

There are several reasons why convenience store payments are so widely used.

<Reasons why customers choose convenience store payment>

• ・I don't have a credit card
• ・I don't want to use credit cards (concerns about information leakage and unauthorized use)
• ・You cannot apply for a credit card (for example, if you are under 18 years old)
• ・Convenience stores have many stores and are highly convenient.
• ・I want to pay in cash at the store

First, there is a certain number of people who do not have credit cards or do not want to use them. After hearing news about personal information leaks and credit card fraud, many people may decide they don't want to use credit cards.
Additionally, since people under the age of 18 cannot apply for a credit card, convenience store payment is a convenient payment method for young people.

There are approximately 56,000 convenience stores nationwide, so they are popular for their convenience. Many people find it safer to pay in cash at a store. Some people may not be used to paying online or would prefer to pay in cash if possible. Convenience store payment is used in a variety of situations as a payment method that meets these needs.

Reference: Japan Franchise Chain Association “JFA Convenience Store Statistical Survey Monthly Report” (October 2023)

CVS Payment and fees

From here, we will explain the fees that e-commerce businesses are most concerned about when introducing convenience store payments. The costs required for an e-commerce business to introduce convenience store payment are as follows.
Please note that each cost varies depending on the industry and payment agency, so we recommend checking before implementing the service.

• ・Initial cost
• ・Monthly cost
• ・Fees per payment

Regarding fees per transaction, the amount is determined by the amount of each transaction. The upper limit for one payment is less than 300,000 yen, and a transaction fee of about 100 to 600 yen is required.

For your information, unlike convenience store payments, many payment methods such as credit card payments charge a fee of several percent of the product price per transaction. For example, if you sell a product worth 10,000 yen by credit card, a commission of around 1.00% to 10.00% will be required, so the amount you will have to pay to the e-commerce business will be around 100 yen to 1,000 yen.

When introducing convenience store payment, the e-commerce business can decide how the payment fees will be shared between the e-commerce business and the customer. If the entire fee is borne by the e-commerce business, there will be no burden on the customer, but it is important to note that each payment incurs a cost.
On the other hand, while increasing the percentage of fees paid by customers will reduce the cost burden on e-commerce businesses, there is a possibility that some customers will avoid making purchases.

Convenience store payment fees borne by customers

As mentioned above, the fees that customers pay when making convenience store payments vary depending on the e-commerce site and service they use. If all fees are borne by the e-commerce site, there will be no fees for the customer.

Payment methods for convenience store payments and fees borne by businesses

There are generally two types of payment methods for convenience store payments: "payment slip type" and "payment number type," and the fees borne by the business operator differ depending on the payment method.

Payment slip type

With the payment slip type, the e-commerce business sends a payment slip with a barcode, product amount, and payment date to the customer, and the customer presents the payment slip at the cashier of a convenience store and pays for the product. This is how you pay.
Although it requires administrative work for e-commerce businesses to print and send transfer slips, it is a payment method that is familiar to customers of a wide range of generations, so it can be used without hesitation.

Example of usage amount, fees, and expenses for payment slip type (to be borne by business operator)

Payment number type (online payment number issuing method)

With the payment number type (online payment number issuance method), when a customer makes a purchase on an e-commerce site, the customer must either tell them the various numbers required for payment displayed on the e-commerce site at the cash register of a convenience store, or use the number installed at the convenience store. This method allows you to pay by entering the payment slip into a dedicated terminal and presenting it to the cashier.
The advantage is that e-commerce businesses do not need to send payment slips to customers, and there is no administrative burden.

Example of usage amount, fees, and expenses for payment number type (online payment number issuance method) (to be borne by business operator)

SB Payment Service provides the latter payment number type (online payment number issuance method).
Convenience store payments have the advantage that they can be used even by young customers who do not have credit cards, and they do not need to have cash ready when receiving the product, unlike cash on delivery.
At the same time, for e-commerce businesses, by introducing payment methods that meet customer needs, they can expect to expand their customer base and sales, which they have missed out on in the past.

▼ Click here to find out more about CVS Payment

What is CVS Payment? About its mechanism and merits

▼ Click here to find out more about SB Payment Service's CVS Payment service

SB Payment Service for introduction of CVS Payment payment agency service

A payment methods that anyone can use by paying at major convenience stores nationwide

Advantages of introducing convenience store payment for EC businesses

For e-commerce businesses, convenience store payments have many advantages. Here, we will introduce four typical benefits.

Expected to improve sales

The biggest advantage of convenience store payments is that you can expect to increase sales. Convenience store payment, which allows payments 24 hours a day, 365 days a year, is a convenient payment method for customers and is expected to have a sales promotion effect.
It can be said that this payment method can be used by a wide range of customers to suit their lifestyles, such as stopping by a convenience store to make a payment on their way to work or school.

Can target people who do not have a credit card

One of the benefits of convenience store payment is that it allows e-commerce sites to target people who do not have credit cards. In fact, more than 15% of customers choose convenience store payment when purchasing products online. It would be a good idea to make sure to incorporate it without ignoring it.
By capturing as new customers customers for whom credit card payments were the main reason for hesitation in purchasing products on e-commerce sites, you may be able to expand your target group.

Payment confirmation can be done quickly

One of the benefits of introducing convenience store payment is the ability to quickly confirm deposits in real time. In the case of financial institutions, if you have not opened an online account, the only option is to confirm the deposit during the counter's business hours.
On the other hand, if you pay at a convenience store, you can check the payment status on the management screen within a few minutes to an hour after the payment. The ability to quickly confirm payments is a major benefit for businesses of introducing convenience store payments.

Non-payment can be prevented

One of the important benefits of introducing convenience store payment is that it helps prevent non-payment. By adopting a prepayment system in which products are shipped after confirmation of payment at a convenience store, the risk of non-payment can be reduced.
Additionally, some payment processing companies offer non-payment guarantees for deferred payments made at convenience stores. If you use such a payment agency, the business will basically not incur any loss even if there is an unpaid deferred payment. Introducing convenience store payment is a significant measure to prevent non-payment and ensure payment is collected.

The benefits of convenience store payment are explained in detail in the article below.
What is convenience store payment (convenience store payment)? Explanation of the mechanism and benefits | SB Payment Service

Disadvantages of introducing convenience store payment for EC businesses

Convenience store payment has both advantages and disadvantages. Let's check the points you want to keep in mind when introducing convenience store payment.

If you do not use a payment agency, the contract and screening procedures are complicated

The disadvantage of introducing convenience store payment is that procedures related to contracts and screening tend to be complicated. If you want to implement convenience store payments without using a payment agency, you will need to negotiate, contract, and coordinate systems with each convenience store company individually.
Additionally, you must pass an examination by each convenience store company, and these procedures are extremely time-consuming and labor-intensive. Therefore, many businesses use payment processing companies.

If the payment slip is lost, it must be reissued (for payment slip type)

Another disadvantage is that customers may lose their payment slips. If you are using the payment slip type where you mail the payment slip to the customer, you will need to reissue the payment slip if it is lost. Since it is costly and time-consuming, we recommend using a payment number type that can be checked immediately.

Cancellation may occur without payment

Another disadvantage of convenience store payment is that there is a risk of cancellation with unpaid status. Payment deadlines are set for convenience store payments. Some customers cancel their transactions if the deadline has passed. You will need to take measures such as using a prepayment system that ships the product after payment is confirmed, or using a payment agency that guarantees that deferred payments will not be missed.

CVS Payment mechanism and system connection method

The flow of convenience store payments involves customers, merchants (EC businesses), convenience stores, as well as collection companies and payment processing companies. We will explain the payment flow for convenience store payments using a payment agency using the SB Payment Service system as an example.

CVS payment mechanisms

1. (1) Customers select CVS Payment at merchants and purchase products, etc.
2. (2)-(3) Execution of payment processing at the storage company through our company
3. (4) merchants provide payment information to customers
4. (5) Customers pay the price at convenience stores based on the payment information.
5. (6) merchants provide products to customers
6. (7)-(8) Payment from the storage company to the merchants through our company

CVS Payment fees are offset when the payment is made from the Company to the EC merchants.
The final timing of payment to the EC merchants depends on the convenience store. This is because the timing of recording sales is different due to the system of each convenience store.

There are two types of system connection methods, "Link Type" and "API type".

In order to introduce convenience store payment as a payment method on an e-commerce site, it is necessary to connect the e-commerce site and the payment agency's system.
SB Payment Service has two types of system connection methods: the "link type", which requires little development, and the "API type", which allows for flexible system connections.

"Link type" is a connection method that allows customers to go to our payment screen and process the payment when purchasing a product. Since EC businesses do not need to build a payment screen, it has the advantage of reducing development man-hours.

Link type connection image

▼The link-type connection method is explained in detail on the following page.

On the other hand, for the "API type", the payment processing procedure screen is prepared by the EC merchants and the payment processing is performed by communicating the necessary payment information such as the product price and the number of products to our server. Although it requires more development man-hours than the "Link Type", it has the advantage that the payment screen can be freely designed and the customer can complete the purchase procedure on the EC site.

API type connection image

▼The API type connection method is explained in detail on the following page.

Points to compare PSP

If you use a payment agency company to introduce convenience store payment, let's compare the features of each company. Points to compare include:

timing of payment

One of the important comparison points is whether there is a difference in the timing of deposits between convenience store payments and existing payment methods. The smaller the delay in the timing of deposits, the faster the deposit cycle will be, which will lead to improved operational efficiency for business operators.
On the other hand, if the timing of deposits is inconsistent, it may take a lot of time to reconcile the deposits.

Settlement fee

Check the fees per transaction and compare them to see if they are the same as the payment agency you are considering. However, the payment fees remain the same for most payment processing companies, so it may be difficult to compare fees alone.

Monthly cost

When comparing monthly costs, be sure to also check the minimum monthly cost. However, just because the monthly fee is low doesn't necessarily mean it's a good deal. This is because if there is a large difference in the timing of deposits between convenience store payments and existing payment methods, the operational effort will increase, and no matter how low the monthly usage fee is, the labor and time costs may increase. We recommend comparing them, including the timing of deposits and settlement fees, and make a comprehensive decision.
When comparing payment processing companies, in addition to the above items, it is important to pay attention to the number of supported convenience store brands and whether they offer services that are compatible with convenience store payments. By doing so, you will be able to introduce a payment processing company that best suits your needs.

Comparison example of payment processing companies

In the example above, when comparing the payment fees and monthly costs, it appears that Company B has an advantage in implementing it. However, it is important to check that the timing of deposits is aligned with your existing payment method.
For example, if the deposit timing of your existing payment method is 50 days, if you choose Company B, there will be a 10-day delay in deposit. As a result, the timing of applying the deposit may be delayed, which can make the process more complicated. With Company A, the timing of deposits is aligned with existing payment methods, so even if the monthly fee is 500 yen higher than with Company B, the benefits are considered to be significant.
In this way, it is important to carefully check not only the costs but also the timing of deposits, and consider the practical burden when choosing a payment agency.

Strengths of SB Payment Service

Our "compatibility with major convenience stores," "payment agency service," and "NP deferred payment."three strengths in convenience store payments are We will introduce the contents of each.

"Compatible with major convenience stores"

Our convenience store payment service is compatible with major convenience stores nationwide, which is why it is chosen by many e-commerce businesses. It is compatible with 7-Eleven, Lawson, FamilyMart, Ministop, and Seicomart, and by simply applying to us, e-commerce businesses will be able to accept payments at each convenience store.

"POBO Service（Payment be half of）" for smooth refunds

When paying at a convenience store, the convenience store cannot issue a refund to the customer, and if a refund is required, the e-commerce business must issue the refund directly to the customer. Generally, the refund will be made to the customer's bank account. In this case, the EC business will incur the burden of transfer fees and transfer work. If you only deal with a few refunds, it won't be a big burden, but if you receive more than 10 refunds each month, you should think about ways to improve efficiency. We offer a payment agency service that can be used to handle such complicated refunds. We will transfer the required amount to the customer on behalf of the e-commerce business. E-commerce businesses can easily complete the transfer process by giving instructions to us.
*A separate contract is required in addition to convenience store payment.

"NP postpaid" that allows you to receive the product first

As mentioned above, convenience store payment is the second most popular payment method after credit card payment, but recently NP deferred payment, which allows you to pay at a convenience store after receiving the product, has become more popular.
Our company offers NP payment, which has been introduced in over 23,000 stores and holds an overwhelming share of the deferred payment payment service. When introducing convenience store payment, please consider ``NP deferred payment'' as well. As mentioned above, our company provides many services to support the business expansion of e-commerce businesses. If you are an e-commerce business considering implementing it, please contact us.

Flow until introduction of CVS Payment

If you apply for the Credit Card Payment agency service of SB Payment Service, we will proceed according to the following flow until the start of use.

*The period is an estimate. The start date of use will vary depending on the payment method you apply for and the screening status of the payment provider.
*Please note that you will not be able to take the screening if the required documents are insufficient.
* The SB Payment Service sales representative will inform you about the required documents at the time of application.

Please see the following page for detailed installation procedures and costs.
Flow and procedure until the introduction of online payment service

FAQ

Q.

What kind of CVS Payment is there?

A.

There are generally two types of CVS payments, payment slips and payment numbers.

Q.

What are the benefits of CVS Payment?

A.

The benefits of convenience store payments include "expanding sales opportunities," "reducing the risk of uncollected payments or product cancellations," and "real-time payment notifications."

Q.

What are the costs (fees) for convenience store payments?

A.

The costs for e-commerce businesses include "initial costs," "monthly costs," and "fees per transaction." Initial costs range from 0 to 50,000 yen, monthly costs range from free to 10,000 yen, and fees per transaction often range from 100 to 600 yen.
On the other hand, the fees paid by the customer range from 0 to 200 yen per transaction. The fees borne by the customer will vary depending on the extent to which the e-commerce site operator bears the fees. The reason why there are cases where the customer's fee is 0 yen is because the e-commerce site operator pays the entire fee.

If you have any other questions, please check the FAQ.