Money that can be transacted or exchange electronically is the online payment method. For this method, you need a computer network, internet, and digital system. Payment can be made by credit card or other options like net banking, online wallets, etc. The online method makes money dealings simple, and within seconds you can transfer from where ever you are. This helps merchants a lot in their daily business transactions who are dealing with a huge amount of money. The payment system is normally running by the third party for all transactions, and they deduct a small percentage of money for their profit.
There are many online payment systems today. Google, PayPal, Click2pay, Amazon, Dwolla are some of them. Merchants need a secure online payment platform to transfer and to be safe from stooling personal details and reduced paper works. An online payment gateway is needed for a merchant to accept and transfer payments.
How this online payment system works:
- Customer-first purchase the product
- PSP sends the transaction details
- Payment processor check the details
- Payment processor authorizes fund from customer bank and sent amount
- Payment gateway responds to a merchant by fund accepting
- After getting the fund, the merchant responds to the customer for the transaction was a success or not
We all know that business is changing fully to digitally now, so online transactions are getting more in business terms. As we know, there are various payment methods that are popular in e-commerce and a role in business conversion.
Benefits of online payments
- Need less time
- Multi-currency can be done
- If payment is not complete, the consumer gets a second chance to complete the process by E-mail and a link to click directly get back to the process.
- Reliability to Merchant
- Payments can be made instantly
- This will help simple money management
Google pay helps to send money in the ease and quick to your friends and can be paid online. Google pay app can be easily installed. The device is there to get paid in-store hold your phone to credit card terminal so it will connect wireless, and you can pay after getting blue tick mark you paid the bill, and the process is completed.
PayPal allows you a vast payment through your bank accounts. You can add your card details and bank account. There are options to use through which you need to pay the bill. You will receive money through this online service.
Stripe is a worldwide online payment method. You can add multiple stripe account for your business. Stripe allows almost all cards for payments. stripe support recurring and invoicing.