Business owners now have multiple methods that they may use to accept payments online from customers and also vendors alike. Larger businesses generally opt to work with dedicated payments gateways, or install a plug-in and use customized applications for their businesses.
Smaller businesses have other options, which will not be feasible with companies and organizations with a high turnover. These may also be used by larger organizations, however, for many; their fee structures are aligned with the type of payment methods that they use to accept payments online from their customers.
Virtual payments This type of payment can be accepted by most business owners; the application is linked to the merchant account, which allows seamless transactions between the business and the customers and vendors. This type of application can be installed by any entrepreneur, especially ones that take multiple payments throughout the day. As every country has a favored method of payment, it shall greatly depend on the business’s country origin, whether card payment, bank transfer, or electronic check is used for the majority of the payments.
Credit card processors This mode of payment is the most popular method to accept payments online. It is still a favored method to pay online, and most small and large business ensures that customers with credit cards have that option.
Payment Gateways This payment method will have a shopping cart with an e-commerce website. Once the car6t has been finalized, the customer remains on the website and does not need to leave the page of payments. The customers’ information is encrypted for security and then sent to the gateways, which will then forward it to the payment processor and then finally to the debit and the credits account, of the customer and the merchant. This is the most popular method for medium to large businesses.
Third-party merchant accounts This scenario is ideal for entrepreneurs to will a low volume of payments. This is because there are no security deposits required with this method of payment acceptance, and it can also be combined with e-commerce service packages which can encompass the gateway, in the case of credit card processing and point to point sale on the internet. This mode of payment acceptance comes with higher fees over time, although they are good for small businesses starting out.
The number of ways customers are allowed to make the payment, the more payments the business can receive. As of now, there are still too many companies working on credit cards only, and this can pose a problem for many who are not comfortable with card payments.
To accept payments online, providers are working diligently to add more methods of payment acceptance, so that smaller businesses and enterprises that accept international payments can also benefit from online portals. Digitalization has radically shifted the perspective from the sellers to the buyers and it is imperative to understand their requirements and take into consideration their comfort, before going ahead with accepted methods of payments that may or may not be effective over time.