One of the most important aspects of an e-commerce website is a well-functioning payment processing system. The type of payment methods available on your website will depend largely on what you are selling and where you want to sell it, but there are some common ones that many businesses use. In this blog post, we will be discussing some popular types of payment methods so that you can decide which would work best for your business!
Let’s take a close look at these methods.
1. Credit/Debit Card Payments
Credit cards are the most common way to make a payment, accounting for more than half of all online transactions. They’re also one of the safest ways to pay because they offer protection against fraud and identity theft when used with CVV codes or PINs. Debit cards, meanwhile, are used for purchases of items under $25 and can be a good option if you want to avoid using your credit card.
Cash is the simplest and most common form of payment. It can be used in both brick-and-mortar stores as well as online e-commerce sites. Cash is one of the most reliable payment methods because it cannot be hacked by cybercriminals. However, cash can also pose challenges for e-commerce sites that may need to invest heavily in security measures at the point of sale.
3. Bank Transfers
One of the most common payment methods in Ecommerce is bank transfers. There are many reasons why so many people choose this method, but one of the main ones has to do with security and cost-efficiency. If you’re a business owner that wants to use banking services for your online store then it may be advisable for you to take advantage of some of the bank transfer options that are available to you.
4. Mobile payments
Mobile payments are one of the most popular and convenient ways to pay for items. Google Wallet, Apple Pay, and Samsung Pay all allow consumers to store a digital copy of their credit card in an app on their phone so they can use it at any time without having to pull out plastic or cash. They also have apps that make splitting the bill with friends and family a breeze.
5. Prepaid Card Payments
Prepaid card payments are one of the most popular payment methods in E-commerce. They account for around 40% of all transactions made using a credit or debit card, largely due to their low prices and increased fraud protection when compared to other cards such as American Express. This is because prepaid cards cannot be used by themselves without first loading money onto them.
6. E-Commerce Payment Gateway
Payment gateways are the most common way for e-commerce platforms to process payments from customers. The majority of payment gateways can be used in two ways: as a payment processor or as an acquiring bank. Payment processors allow merchants (both large and small) to accept credit card transactions by acting on their behalf with the merchant’s own merchant account and acquiring a bank.
Acquiring banks, on the other hand, act as a payment processor for merchants who have their own merchant account but lack an acquiring bank or do not want to share credit card data with the acquiring bank that services their processing needs.
E-wallets are convenient ways to make purchases without having to enter your credit card number, billing address, and other sensitive information every time. They work by saving all of the necessary data on secure servers so you don’t have to keep inputting it with each purchase. E-wallets can also be used for in-store purchases, and in some cases can be used for online transactions.
The most popular e-wallets are Amazon Pay and Google Wallet. These two services have recently become available to Canadian users of the platforms after a long period of beta testing with consumers on both sides of the border.
Cryptocurrencies are a popular form of payment for e-commerce. Cryptocurrency is a digital currency that functions independently from any government or central bank, and its value depends on the country’s demand. This means that if more people in China want to buy crypto coins than sell them, they will increase in price since there would be more demand.
People typically use crypto coins to avoid government interference, but they can also be used for tracking and tracing transactions as well. This is because all transactions are recorded on a public ledger that anyone using blockchain technology (the underlying software) can see. Cryptocurrency is not yet widely accepted in stores or online shopping carts due to its limited use and volatility.
The Bottom Line
Now that you know the different types of payment methods, we hope that it will make your decision a little easier. It’s important to have an e-commerce website with a well-functioning payment processing system so customers can easily and seamlessly purchase your products or services. We are happy to provide more information about all our offerings in order to ensure that you find what works best for your business goals.