Due to the covid 19 pandemic, online shopping has changed forever. These days majority of people prefer shopping online. Online payments are growing by 104 percent per year. So, most people prefer paying online and if their preferred payment methods are not available, they simply ditch that online store. So, your e-commerce store needs to accept online payments.
You also need to make sure that people trust your online store, else they won’t enter their Credit Card/PayPal details. There are different types of online payments that are preferred by online consumers. As a merchant, you need to keep everything in mind so that the customers do not abandon their cart and leave your website.
Online payments basically are the payments made using the internet to the merchant’s bank account or any other wallet. There are many choices when it comes to paying online, like Paypal, Apple Pay, Google pay, Net banking, and many more.
To understand online payments, you need to get acquainted with these concepts thoroughly:
It is basically the software application that enables and proceeds the payments to the merchant’s website. Payment gateways either accept or reject the mode of payment used by you by sending the information to the server. This helps you in either proceeding with the payment, or greeting declined. In case your payment has been declined by the payment gateway, check your mode of payment and do it again.
It basically sends information to the card server to check for any kind of fraud and check whether the customer’s account has the required balance in his/her account or not. Once checked, the payment is either proceeded or declined. In case it is declined, check your balance or change the card and proceed further.
It is basically a bank account made for business purposes that accepts online payments from the customer. To accept payments, merchants needed to apply for a merchant account earlier, but now they can do so by using payment aggregators as well which is third-party software.
The network of online payments is spreading vastly. To get high rates of approval, you need to make sure that you offer almost all types of payment methods and are flexible enough to offer the local banks as well. Here given is a list of the most commonly used payment methods:
Most customers today pay using either their deceit card or credit card. Statistics say that more than 60% of people prefer paying using cards. When a customer uses a card to pay, the merchant needs to pay the transaction fees. You must have noticed this while purchasing something when the merchant asks you to pay some percentage extra when you are paying using the card.
Although credit cards are more convenient to pay online, they charge huge transaction fees. To avoid this, e-checks were introduced. Payments using e-checks are similar to payments using cash. After the customer’s approval, the money is then sent to the merchant’s server. There are no interchange fees applicable, or even if it is, it is usually very low.
Mobile wallets are e-wallets that store the customer’s credentials and help them pay within a fraction of a second. Every time they have to pay, they do not need to look for their bank details or the card number. They can simply use their mobile wallet to pay for the transaction. Mobile wallets are widely preferred and favored due to the convenience they bring with them.
Once you have made a purchase, you shall receive an email with a link. You can make the payment just by using a couple of clicks. It is as convenient as mobile wallets and saves time too.
After the pandemic, digitization has become one of the most important things. People now prefer paying online more than offline or in cash. A merchant who is accepting online payments is usually preferred these days. So it is better to start accepting online payments to avoid abandonment of the cart.
