QUESTION: Can you advise on the options available for accepting online payments via my business website?

Nicolas Martin, eBusiness advisor at Invest NI, replies:

There are three main online payment options: setting up an Internet merchant account; using a payment processing company; or joining an online mall.

Which you choose will depend on how you are already trading and the volume and type of transactions you expect to process online.

If your business already accepts debit and credit card payments for face-to-face transactions and you expect a fairly high number of online transactions, an Internet merchant account is probably the best option.

It offers the greatest amount of flexibility and the quickest payment method, so is best if cash flow is very important to your business.

On the other hand if you don't expect a high number of online transactions and you don't currently accept debit or credit card transactions so have no merchant account, you should consider the facilities that a payment-processing company offers.

These companies obtain payment from your customers' credit and debit cards on your behalf and forward the money to you.

The benefits include reduced administration for you, but the disadvantages are that you receive the money later and the charges tend to be higher than for a merchant account.

An online mall brings together a number of online shops on the same website, often from the same sector.

It will host your online shop and process payments for you so again it reduces your administration.

It's also a very quick and easy way to set up an online presence so is ideal for people with limited IT skills. However, it is the most expensive method and can limit the format of your website.

QUESTION: I am considering where to allocate my advertising budget for 2009. Should I concentrate on online advertising?

RUAIRI McNALLY, media director with Bluecube Interactive, specialists in digital marketing strategy, replies:

With the advent of a harsher economic climate we have seen advertising budgets being squeezed as businesses cut their costs to ease their bottom line.

This all usually means a reduction in spend in marketing and traditional advertising channels with more focus on channels which deliver direct response (i.e. more sales per spend).

This is where online advertising prospers while others fail, as most forms of online advertising can be tracked and measured on a day-to-day basis, unlike some other traditional forms (television, radio and Press).

In 2008, the technology behind it is better understood.