Basic Notions About Online Payments

The Internet encourages both offers and services to be in continuous development, so the market is always offering new and practical payment options. Thus, the question arises as to whether these are taking the lead over the more classic options, what are the advantages of electronic money compared to paying by invoice, by direct debit or cash on delivery; and, finally, what are the risks involved in processing payments through third parties. To provide the best possible service, merchants must maintain a global vision and invoice online maker and secure online payment methods available to their customers.

The most common online payment methods

Data protection or transaction security is highly sensitive issues for users. Media reports of theft and phishing have led to a healthy skepticism about online transactions. To make it easier for website visitors to become customers, it is recommended that store administrators satisfy their customers even with regard to their online payment methods. Unfortunately, the perfect solution for transferring money on the Internet has not yet been found and all systems have advantages and disadvantages. Online payment methods become, as a consequence, an agreement between the protection of buyers and sellers.

Purchase with invoice

Buying with receipt of invoice is one of the most popular methods among buyers. The reason is that, in this case, the risk of the transaction falls entirely on the seller. Once the order is placed, it is sent along with your invoice, so when the order reaches the customer, he or she transfers the payment either by using the transfer receipt or through the electronic banking option. In this way it is not necessary to reveal any type of sensitive banking data on the Internet. But if there are outstanding invoices, the store operators are forced to face higher expenses. Despite this, this is the most recommended modality for merchants, since many clients prefer this type of transaction to others. Third-party service providers such as Klarna, Bill Pay or Bill Safe help store managers reduce risk by handling customer payments and merchant payment claims in the context of factoring. Alternatively, in many online stores only regular customers have the option to make purchases with receipt of invoice in order to reduce the risk of fraud and non-payment. Transaction costs are not included in this payment method.

Prepaid

Payment in advance works in reverse of the method of payment with an invoice. If the customer chooses it, the merchant will ship the order once the invoice amount has been credited to the company’s account. Thus, the risk of the transaction lies with the client and in the event of finding unprofessional online stores, the merchandise may not be sent despite having paid for it. Likewise, the retroactive liquidation of the purchase in the case of deficient or defective products is more complicated than in the case of purchases with receipt of invoice. To make this payment method more interesting for customers, some merchants offer discounts on purchases in advance. It is also advantageous for customers that the transfer is made by traditional means and that sensitive bank details are protected. If you opt for the traditional transfer, the advance payment does not cause costs for the transaction. As fewer and fewer online customers choose to pay in advance, merchants should consider offering other systems for online payments to be made by merchants. In general, advance payment is recommended when the reliability of the merchant is assured.