More and more businesses go online every year. It is easy to order goods and services on the site by paying from a bank account. The task of a business is to take care of clients, that is, to make payment on the site convenient and safe and enhance the checkout experience. This article will talk about popular online payment services and what is the best way to accept payments online from your clients.
There may be several answers to the question “how to accept online payments,” among which you can choose the most convenient option for you and your clients.
Let’s consider some of them:
It is important to agree on terms and distinguish between “payment methods” and “payment provider.” In the first case, we discuss specific methods that clients can choose (debit and credit cards, electronic money, etc.). The second is an “intermediary” between the client, business, and payment services and may include various payment methods.
Let’s talk about three popular systems:
Acquiring is a mechanism for accepting money for goods, works, or services from bank cards. This procedure is performed by the acquiring bank authorized by the seller. To receive payments, acquiring banks use payment terminals (MIDs) connected to their network and payment gateways in the case of receiving payments online.
Internet acquiring is understood as a kind of eCommerce, which includes banking services for accepting payment for goods from online stores and retail chains, which is carried out using various plastic or virtual cards. In recent years, this type of payment has become increasingly popular.
The money transfer between banks occurs through the payment system; there are many different ones: Mastercard, Maestro, Visa, American Express, Union Pay, JCB, and others. The terminal issues an electronic check with information about the payment to confirm the operation.
Internet acquiring provides significant benefits for both consumers and organizations that sell goods. For an online store or trading network, the type of banking services in question allows to:
The client is also provided with several benefits, namely:
The disadvantages of Internet acquiring services include:
A legal entity or individual entrepreneur can create a corporate e-wallet with company details, which is linked to a current account. To do this, agree with a payment system that has the status of a credit institution, for example, PayPal.
A payment aggregator is an e-commerce system that combines all possible payment methods into one to facilitate online payments.
Accepting payments online for small business with the aggregator facilitates, speeds up, and automates every step of financial transactions. The default aggregator supports:
The more payment methods on the site, the better, as there is a guarantee that the client will find a suitable option for themselves and will not go to a competitor.
If you are starting to practice online sales or have a small turnover, we recommend that you consider payment aggregators. But an online store with a good turnover is guaranteed to lose tens, if not hundreds of thousands of dollars a month on the additional commission of the aggregator.
Choose the right payment system, increase customer loyalty, and increase sales through the site, thereby recouping the costs of connecting online payments.