Many people think that those who use online payment services are only following a current trend. However, the popularity of these services will only grow as time passes. If you still rely on cash and checks, then you should definitely learn more about other options. It’s completely understandable if you’re confused about how these services actually work.
It’s worth mentioning that apart from not understanding how online payments work, many people are also afraid that they will become a victim of identity theft. Even though there are some risks involved when it comes to using these services, the chances of anything happening to your money are really low. On the other hand, there are numerous reasons why you should start using online payment services.
Speed Up the Process
It doesn’t matter if you’re making a purchase or sending money, online payments will make this whole process faster. Instead of waiting for the check to clear, everything will be completed in just a few seconds. You also won’t have to worry about checks bouncing if the person making the payment doesn’t have enough money to handle the transaction, since you’ll be informed by the service right away.
Another great thing about these services is that they allow you to set automated payments. By doing this, you won’t have to worry about depositing checks and recording payments manually. If you have an online store, you can greatly benefit from this, since all of the payments made on your website will be processed automatically. Keep in mind that there are a lot of online payment services available, so you should really consider placing one on your website if you haven’t already done it.
If you have a website where people can purchase things, subscribe for a service or donate money, your customers should be able to use online payment services to make purchases. If you don’t have this option, then you will be missing out on a lot of potential customers.
How Online Payment Services Work
It’s no secret that you will see a lot of benefits once you start using online payment services, but it’s important that you understand how they actually work. If you want to enable your customers to use online payments, you will need to set up an account with a payment service provider. In order to be able to process payments is a merchant account and payment gateway. Merchant accounts are crucial because they are used to verify important customer information like credit card numbers.
Payment gateways serve as an intermediary between banking systems and your website. The information that your customer types into the required fields is automatically send to banking systems via the gateway. If the customer has enough money to complete the transaction, the funds will be sent to the bank account associated with your website.
The Most Popular Online Payment Services
- PayPal – PayPal is without a doubt the most popular online payment service. It currently has more than 237 million active accounts worldwide. On top of that, countless websites accept PayPal as a payment method. In order to sign up for this service, you will need to link your account to a bank account or credit card. Once you do that, you’ll be able to send and receive money.
- Square – Square is another popular online payment service that allows you to place orders and accept payments from your Android and Apple devices. It uses a layered security system to ensure better security for its users.
- Apple Pay – If you have late-model Apple smartphones, you can use Apple Pay to make online and retail purchases on websites that accept payments made through this service.
- Google Pay Send – Google Pay Send is an online payment service that is available on both Android and Apple devices. It is notable for being a free digital wallet, since it allows you to receive and send money from devices at no cost to the receiver or sender.