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Online payment methods

Friday, July 5th, 2013 by Servage

Our customers are doing their business or creating a website to earn money. Even charity websites have intentions to collect necessary funds. Therefore, accepting payment is a vital function on many websites or web applications. Let’s see how payment is done and what practices are accepted on the web, so that we can do it appropriately. Moreover, so we can provide secure experiences to the users of these websites.

Unlike brick and mortar stores, we can’t expect payments in cash or by check since we are not dealing face to face with customers. Furthermore, depending on the nature of your business, clients can often come from every corner of the world. In this fast paced era, everything is expected in an instant, so the speed of transactions matters greatly on today’s web. Also important are the payment gateways. As there are regional choices for payment gateways, we should have a vast number of payment options integrated in our website design. At the very least, you should incorporate the most popular payment gateways in the countries or regions of your target audience.

Regional Payment Methods

For instance, in Europe, some payment gateways are popularly accepted, but are altogether different from Russian countries as well as those in US regions. Therefore, a knowledge of popular payment gateways is vital for an e-commerce site designer. The same holds true for the payment methods. People from certain regions will prefer wire transfers and direct bank account payments, instead of relying on the use of credit cards. In many cases, PayPal is better compared to other options, especially with customers from regions other than first world countries.

Credit Card Payment

Credit card payments are gaining acceptance with global consumers, due to the wide spread growth of credit card companies and their easy usage policies. With credit card payments, you don’t need to think about currency conversion or even acceptance issues. The process is extremely simple and quick, though you still have to address security issues while integrating card payment methods on your website.

Generally, there are two options for acceptance of a credit card payment. One is by way of your own merchant account, and the other is by utilizing payment gateways, or 3rd party services, that likely carry certain fees. Today, most web designers prefer payment gateways because these services tend to have less issue than many local banks have with setup of merchant accounts and/or accepting payments from various sources as well as working with different currencies.

Popular Payment Gateways

As stated earlier, international clients prefer PayPal as their first choice of payment method. Fortunately, PayPal has recently issued many client-friendly policies, including acceptance of prominent credit cards and liberal fee structures for non-US clients. This continues to gain in popularity for e-commerce businesses operating around the globe.

Skrill (formerly known as Moneybookers) is the second most popular payment gateway in the world business community. Skrill accepts a wide range of credit cards and payments from different regional banks and vice versa. Like PayPal it is free to sign in and setup, while having nominal transaction fees. Of course, its fees and rules vary by region; therefore, it has favorable acceptance in European countries.

Today, 2Checkout is highly popular as it accepts a wide range of credit cards, debit cards, pin debit cards, etc. to support users from more than 200 countries. Due to its transaction fees and monthly dues, it can be a bit more expensive, but of the major players, it is the most secure.

Google Wallet or Google Checkout is another popular payment method in the US, though it is restricted to this region only. News from May 2013 notes that Google is going to end its Checkout services in November 2013. One of the highest priced, though retail friendly payment gateways is Authorize.net. They charge sign up fees, transaction fees, additional monthly dues and other fees. However, Authorize.net offers one of the most secure payment experiences.

References & More Reading

Accepting Credit Cards on Your Website

10 Safe and Popular Gateways for Online Payment Processing

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Categories: Business

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