Online Payment Services

In an age where the digital world is rapidly developing, our businesses and personal interactions also expand online. No matter what your organization, company, or business is, it’s now essential to offer customers more than just the traditional payment methods. An online payment service gives customers hassle-free, secure, and convenient online transactions.

You may ask yourself, “why are online payment services necessary?” For the longest time, people have been using traditional payment methods, like cash and checks. But to make things more comfortable and efficient, everybody adapted to new technologies and innovations. Take a look at the following reasons to need these payment services.

Increase Conversion Rate and Revenue

If you want your business to thrive, the solution is to put it up on the web. How many companies are still not using the internet to promote their brand and achieve higher revenue? Only a few are still manually processing transactions because various payment options lead to higher income and customer satisfaction.

Paperless Transactions

Online payment services are revolutionary. Not only do they reduce paperwork, transaction costs, and personnel costs, but they’re also user-friendly and less time-consuming than manual processing. Plus, they help businesses extend their market reach.

Cashless Transactions

Have you tried shopping online but realized that you don’t have any cash on hand? When you purchase goods and services online, you have the option to pay for them through electronic payment methods. These types of payment services save you from pulling out cash. There’s no need for withdrawals. All it takes is a few clicks.

Convenient and Accessible

The power of convenience surpasses most necessities in the modern world, where everyone is buzzing with tons of work and activities. The time saved by using online services contributes a lot to people’s inclination towards the service. Anyone can pay online whenever they want and wherever they are.

Speed Up Payment Process

Using online payment services can take only a matter of seconds, from submitting an online payment to updating your bank account. There’s an almost immediate confirmation of transactions, too—no more waiting time! That’s the beauty of these online payment services.

Save Yourself from Troubles

Once you set up an online payment system for your website, payments are automatically processed. Automated payments save you the trouble of depositing checks and manually recording payments, giving you more time to focus on growing your business.

Expense Control

Having cash is handy, but it’s easily consumable. The great thing about online payment services is that it allows you to manage finances better and check your virtual account to find your transaction history. Electronic payment services let you think before proceeding with a transaction.

Choosing online payment processing services could be tedious and overwhelming since you have a wide range of options out there. However, it would be easier for you to know what features are best incorporated in the payment service you want to get. Here are some key features to look for in choosing online payment services.

Security Features

Of course, security is essential above anything else! Consumers look for online secure payment services because cases of sensitive data breach leading to fraud or identity theft are growing every year. Luckily, the best payment service provider has highly effective security measures and anti-fraud features that make transactions safe and reliable.

Cross-Platform Compatible

An important consideration is how well an online payment service will integrate with your current platform. You want to make sure the features of your online payment system matches your brand. Also, check for compatibility since you may encounter payment services that you’re not eligible to use or not offered in your area.

Real-Time Monitoring

Unlike physical payment transactions, where you have to deal with a lot of paperwork and constant follow-ups to track your payments, online payment services give you the option to monitor your payment transactions’ progress. Most service providers give you notifications that show whether your payment transaction is pending, has failed, or has pushed through.

Timely Processing

Although transaction completion varies on the type of online payment service that you’re using, fast and timely processing is a feature that you should look for. In instances where you urgently need your money transferred, an online payment service that can immediately process your payments would make you feel at ease.

Reliability and Assurance

Payment transactions made online can be scary for some. You don’t want your money to fall into the hands of the wrong people, so you need to be smart and careful in choosing your service provider. Look for an online payment service that guarantees reliability, assistance, and troubleshooting features in times of transaction issues.

24/7 Customer Support

Customer support must always be available to help you sort out transaction issues, such as failed payment transactions, incorrect payment details, refunds, and other disputes with the other party. Money doesn’t grow on trees, and therefore, issues regarding money are a sensitive matter for most people, and you need to resolve them as quickly as possible.

Online payment services are available worldwide. Whether it’s for a business transaction, paying for your bills, or merely buying products online, you can choose an online payment service that works best for you. The following are some types of online payment services, including their benefits and drawbacks, giving you an idea of what you can use.

ACH Online Payment Services (Electronic Checks)

An ACH check or electronic check is an online payment service that pulls funds directly from a checking account. It saves you from the hassle of writing a paper check or making a debit or credit card transaction to pay a bill. The ACH network is also responsible for transactions, such as direct deposits from employers’ bank account to their employees.

Online Payment Gateway Services

Online payment gateway services allow merchants to accept credit and debit card payments online. It authorizes and processes payments for online transactions, acting as a middleman between a merchant and a customer’s sponsoring bank.

Digital Wallet Payment Services

A digital wallet, also called an e-wallet, is an online service you authorize to conduct personal or business transactions. It allows you to store payment cards and IDs like driver’s licenses, loyalty cards, and insurance cards, as you do with a physical wallet. An e-wallet is usually carried on an electronic device, such as smartphones, desktops, and laptops.

Merchants

Perhaps merchants are one of those who can immensely benefit from payment services online. Most merchants buy and sell products online since they have more audiences to offer their products and services. Choose online merchant payment services that are perfect for your business needs.

Consumers

If you want to buy products and services, payment online can quickly be made. Whether you’re just at home booking your next travel ticket or at your favorite café looking through some items to add to your shopping cart, online payment services will make your transactions a breeze!

Businesses

Online payment services for businesses have become a go-to in payment transactions because consumer behaviors have switched digitally. A business needs to adapt and thrive in every situation while keeping a consistent revenue flow. These services save time and effort for both companies and clients.

Family Members

It’s not only for business purposes that you can use online payment services. Parents can use it to shop for clothes, gadgets, and household furniture. Online shopping has become a trend, and you and your kids can join the group of shoppers—there’s no need for you to travel to the mall. You’ll just wait for your products to be delivered to your doorsteps!

Students

Even students can benefit from online payment services. They can shop online for their requirements, pay for their school fees, and other necessities and lifestyle needs. Plus, those students living away from home can use these services to pay for their dormitory or apartment utility bills and rent.

Educational Institutions

Students’ tuition and other educational fees are not the only payment transactions that educational institutions make. Online payment services for schools are also used to pay their employees and conduct other business transactions to improve the institution.

Companies

Companies with relatively large staff and employees can use online payment services to handle payment transactions better. It’s more efficient and less time-consuming compared to traditional payment methods. It also gives companies better tracking means of inflow and outflows of funds.

Non-Profit Organizations

Online payment services for nonprofits are used to handle financial donations, collect membership dues, sell online merchandise, and sell event tickets to gather funds. Collecting donations online would be safer and more convenient, especially if there’s a large sum of money involved.

Website Owners

You would have to spend some money to find the right tools to launch a fantastic website. Online payment services for websites can be used to pay for a web-builder, a web hosting service, marketing tools, and maybe some themes to brighten up and beautify your site!

Online Gamers

Payment services should also be available for leisure, such as purchasing gaming needs. Online gaming is gaining popularity in the digital world, and most gamers purchase items or gaming tools through payment services online. You can have all the fun you want while these services process your transactions.

Individuals Paying Bills

Instead of going to physical payment centers and spending more time lining up in queues, bills can be quickly paid in the comfort of your home. Whether it’s for an electric, phone, or internet bill, you just have to let the online payment systems pay it for you. Then, you’re all set. No sweat, no problem!

Travelers

You can travel safer with online payment services. Whatever destination you have in mind, the world is full of digital possibilities that you can enjoy. You no longer have to worry about bringing a wad of cash with you. Plus, the risk of losing money is also slim, giving you more money to spend on souvenir items.

Step 1: Identify what you'll use it for

Before anything else, you should think of what you’ll be using the online service for. Is it for personal use or business transactions? Once you’ve got an idea of how you want to use the service, you can now look up options and recommended services suitable for you.

Step 2: Research and review the different payment methods

The next step is to research online. You can look for the top 10 online payment services then compare them, or you can ask your peers for the type of service they use. Remember to check for reviews and compare features to narrow down the list of online payment services you will consider.

Step 3: Consider your customers

If you’re using it for business, you might want to consider your customers’ purchasing mindset. If you’re a customer yourself, what payment options would you like to get? The safest way to go is to look for payment services that offer a variety of choices. That way, you’ll have a wider customer reach.

Step 4: Check the costs

Consider your budget. You can opt for free online payment services, but those services often lack the security features that paid services offer. If you’re using it to transact small amounts of money, you can go for a relatively cheaper service.

Step 5: Evaluate the risks

With money transactions, you always have to consider risks. Even the most reputable service providers can have issues with transactions. The goal is to find the perfect online payment service that fits all, if not, most of your transaction needs. Just remember to weigh the pros and cons along with its cost-effectivity.

Step 6: Make sure it's reliable

Check for authenticity and reliability! Carefully go over the service provider’s transaction procedures, reviews from previous and existing customers, and even their terms and conditions. Before committing to any online payment service, you want to make sure that your money will reach its destination.

Yes, there are. Although online payment services usually have transaction fees and other additional costs, there are some online payment services that you can use for free. An example of this is free mobile wallet apps, which you can simply download on your device and make transactions online.

A debit card is linked to your checking account and is generally accepted as a payment method along with credit cards. Since you’re taking from your own money, there’s no interest associated with paying using your debit card. Meanwhile, a credit card allows you to borrow money from lenders and use that to pay for your transactions. Unlike debits, a credit card has added charges per transaction, and you may be charged with interest if you have a balance on your account. Take note that there is a credit limit, which varies among customers.

These accounts allow you to accept online payment. Merchant services are paid by the customer through different payment methods, like e-Checks or digital wallet. Then, it goes to the merchant’s accounts after it has been processed. There are a lot of acquiring banks that provide merchant accounts for small businesses.

Since an ACH payment service processes payment by batch, it’s challenging to reverse a payment once the transaction is successful. It would be easier for merchants to refund a buyer’s purchase on their end. However, if your payment was made without your consent, you can contact the merchant and ask for a refund.

There are three ways for a merchant to submit transactions for processing. An API is used for transactions entered online. Meanwhile, orders that are manually taken can be sent using a virtual terminal. Lastly, you can also use the FTP batch file uploads to a secure site to submit transactions.

The differences between ACH payment services and wire transfers are the cost and the time it takes for completing a transaction. Wire transfers are usually available for withdrawal on the same day, as soon as the funds are credited to your account. ACH payment costs cheaper but takes a few days before it settles into your account.

The cost of wire transfer can range from $0 to $50, depending on your financial institution. Although there are some transfers that you can do for free, you can be charged for each transaction depending if it’s an outgoing or an incoming transfer and whether the transaction is domestic or international.

Digital wallets are divided into several types. Let’s take a look at each of them.

Online Digital Wallet

It is a payment service that allows you to make purchases through your device app. You can also store your cards, coupons, and tickets here.

Mobile Digital Wallet

It is usually accessible through an app that you can install on your device, and you can use it upon checking out of a store. The “tap to pay” option is also available in mobile wallets.

Desktop Wallet

It allows you to create a cryptocurrency address for sending and receiving your digital money and store your private key.

Hardware Wallet

It is a type of cryptocurrency wallet that stores your private keys securely.

A reliable cryptocurrency wallet helps the buyer and seller send and receive cryptocurrencies from one wallet address to another. In choosing a cryptocurrency wallet, here are a few integrated features that you can look for: Two-Factor Authentication, Multi-Cryptocurrency Transaction, QR Code Scanner, Security, Transaction History, Wallet Backup.

Mobile payment services are usually done through an app on your device. Some features that you can find are user registration, bank account authorization, adding and checking balance, transferring money, and online bills payment.

Person-to-person, also called peer-to-peer payment, are online services that allow you to send money to other people by searching for their email address, username, or phone number. Whether it’s to send your part of the bill to your family or pay back a friend for lunch, P2P transactions are fast and usually free.

These are services that offer consumers to use credit cards for payment transactions. Credit card payment services may solely accept credit card payments of various brands. They can also be offered as a payment method with other payment options, such as e-checks and digital currencies.

There are several things you can do to find the right payment service for your business. Besides defining what you look for in a service, you must conduct a thorough online payment service comparison among the brands that offer it. You can also study the top 5 online payment services for small businesses to get more specific results. Once you’ve found ideas on the services that are suitable for your business, you can now compare online payment services and look for one that falls under your budget and security needs.

Online gateway payment services can be used in many areas of business. They are commonly used by merchants involved in business activities such as e-commerce, video gaming, gambling, trading online, retail market, travel, food businesses, and even web hosting.

In choosing a payment gateway service, you have to be smart and choose the one of great value. Some standard integrations offered with payment gateway services are API, Hosted Payment Page (HPP), Virtual Terminal (VT), and Plug-ins to CMS, shopping carts, and payment tools.