When it comes to running a successful online business, one of the most important things site owners, drop shippers, and brands need to think about is how to best accept payments online, while also minimizing payment fraud. As wonderful as it is to accept credit cards online, your business is responsible for making sure every transaction is secure and authentic.
Did you know that 42% of customers making online purchases use credit cards as a payment method? In fact, it’s the leading payment method. Electronic payment is running at second with 39% of customers using it.
As years go by, people are shifting towards cashless methods of payment.
But which method works best for your business? What are the different ways to receive payment for online businesses? This is something that you should consider for your business.
Here are some ways you can receive payments on your online business.
1. Receive Payments via Credit Cards
One of the options to help you accept payments online is by credit card. It’s a widely-used method on a global scale, especially in countries like the United States, Canada, Mexico, Korea, China, and most of Western Europe.
Credit cards are also among the most popular payment methods. Payments from these cards go through the use of payment gateways like PayPal and Due, or through merchant accounts.
If you wish to set up a merchant account for your website, be sure to learn more before proceeding.
Another way for you to receive payments online is through the use of e-wallets. There are many online platforms that offer this service. Especially with small online businesses in mind.
Using e-wallets tends to be effortless and easy on both sides. This speeds up the transaction process.
PayPal and AliPay are prominent in offering such options. This makes PayPal popular in the US and AliPay with China.
3. Direct Carrier Payments
There are some services and products that bill customers through their telephone or utility carriers. This is an interesting option for customers to pay for services or products. One such example is with Google’s Play Store, which offers this payment option.
This is a safe option for customers to pick. Direct carrier payment streamlines the process without redirecting them to a different site.
This is also helpful for merchants carrying this service. Not only does it offer a secure method but it’s also fast and seamless.
4. Bank Transfers
Another method that you can use to accept online payments is through bank transfers. This is one of the oldest and more traditional methods available.
Some merchants offer instructions for customers to send their payments towards a bank account. This method often employs the use of an IBAN number.
Keep in mind that bank transfers aren’t immediate. For some banks, it may take 2-3 business days before the deposited amount reflects in the receiver’s account.
It is also possible for customers to send their payments using cash. In fact, other countries like Russia, India, and Romania make use of cash payments for their online businesses.
There are some ways to use this method as factors such as location and reach towards customers come to play.
One of the methods that you can use is through cash-on-delivery (COD). This service allows the courier to send the product. Then collect the payment upon arrival to the customer’s location.
FedEx offers this service and is a preferable choice. Other courier companies only accept checks and money orders.
In addition to using a credit card, Paypal is one of the most used and accepted forms of payment in the world today.
While it is possible to use a credit card to make payment through Paypal, many users are also connecting their accounts to their bank accounts as well. This simply makes it one of the easiest methods of payment processing for millions of users around the world.
Another reason why Paypal is perfect for both customers and eCommerce platforms is that it’s usually simply a matter of clicking a few buttons and providing API account information to integrate it within an online shopping cart or payment solution.
An extra added benefit to accepting payment through Paypal is that businesses can grow their account history and also take advantage of loan programs like Paypal Working Capital.
Pick A Payment Method That Matches Your Business Today!
Knowing and choosing the right payment method for your online business is crucial. This is the lifeblood that keeps your business flowing. Having an efficient, fast, and secure channel to receive payments lets you gain profit while the customer gains satisfaction.
Did you find this post helpful? We have a variety of topics that you can explore to help you with your business ventures. Check this one out about maximizing both time and money as an entrepreneur.