The Different Payment Methods for Your Online Store

Making the decision to start an online store is not an easy one. Like any business, there are many aspects that need to be taken into consideration. One of the most important is the payment method. Since you’re working with customers that can’t pay you with cash, you have to come up with alternative methods for paying for their purchases. There are many options, but depending on your business, some may be suitable and others may not. You need to know the way each payment method works, and the pros and cons of each of them.

Money Transfers and Checks

Money transfers and checks are the slowest form of payment for online sales. Some reluctant customers might feel more secure if they don’t have to give you their credit card information, so having the option of money transfers will be appreciated by them. It is the most secure method as it doesn’t really rely on any kind of exchange of information other than you supplying the customer with the account number the payment is to be made to. Because you are a .com, however, the process will be a lot slower, as you can’t process orders and shipments until you receive confirmation that the transfer was successful. Checks are a form of payment that you really shouldn’t consider. You have to wait to receive the check in the mail, then take it to the bank to have it cashed. And as there’s always the risk of it being bad or bouncing, you should forego this option altogether.

Credit Cards

This is the most popular payment method over the internet, so your shop must be able to accept credit card payment. Payments are processed immediately, and with a guarantee that you are getting your money, which means you can start processing orders as soon as your customer exits the shopping cart. Credit cards are a moderately safe method of payment unless they are lost or stolen, but insurance companies and banks will cover the expenses. Most, if not all eCommerce hosting services, offer shopping carts with a high level of security, so it shouldn’t be an issue. Your main source of payment will be credit cards, as most online shoppers choose them as their preferred payment method.

PayPal

This online payment service is growing increasingly popular as it allows people who don’t have credit cards to shop online safely. PayPal offers services, both for customers and merchants, that allow the conversion of credit card payments into PayPal payments and vice versa. Having a PayPal account for your store comes with a certain cost, usually in the form of a small fee that is paid when you transfer money from the PayPal account to your bank account. Before you decide to offer it, carefully look over the fees and taxes policies of your area to avoid any surprises. Overall, PayPal is one of the safest online payment methods available, and its secure for both you and your customers.

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