Ways to Accept Payments Online
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What online payment methods are available?
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The increase in Internet technology has provided many retailers and individuals with at-home businesses the opportunity to earn additional sales revenues through online purchases. However, the possibility of scams and stolen credit card information leave potential customers wary of giving out their financial information online. Retailers who choose well-known, safe online payment options for their websites give their customers peace of mind, and can increase their bottom lines.
PayPal
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As of 2010, PayPal had over 150 million users worldwide, making it one of the largest online payment processors in the world. Owned by the popular auction site eBay, PayPal allows users to send secure payments from their bank account or credit card without ever revealing their account details to the recipient. Retailers may sign up for a PayPal Merchant Account, and receive a PayPal payment option button to include on their website. When customers choose PayPal to complete their purchases, they are directed to their own accounts to complete the transaction. Accounts are available to users throughout the world, opening the door to unlimited sales potential. PayPal is also the preferred payment method for many eBay stores, and won both the Webby Award and Webby People's Voice Award for Best Financial Services Site in 2006.
Users can open PayPal accounts for free; however, merchants pay a transaction fee for their accounts that varies with the purchase amount.
Google Checkout
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Google Checkout allows sellers to combine Google name recognition with the security of accepting online payments. In addition, Google studies have shown that users are more likely to choose an ad from search results when a Google Checkout option appears, driving more traffic to sites that provide this method. Sellers may create their own online store through Google, and larger retailers have the option to include Google Checkout as a payment option. Customers may submit payments using bank accounts or credit cards; retailers do not see the payment information.
Retailers' transaction fees vary with transaction amounts; they may also receive shipping discounts.
Merchant Accounts Express
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Retailers looking for payment options processed through a merchant provider may use a service such as Merchant Accounts Express. Services are available for both online and store credit card processing, as well as wireless processing, allowing payments to be made via mobile phone. Retailers may take advantage of a 30-day introductory trial. Customers make payments via all major credit cards and electronic checks, submitting their payment information through the company's website. Payment processing and approval occurs through the merchant account.
Rates for merchant services will vary depending on the volume of payments processed per month.
Choosing the Right Payment Service
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Choosing an online payment service is a key issue for online retailers. When shopping online, most consumers look for a site that uses a secure format for payments to protect their financial information and identities. To increase sales potential, businesses should consider which payment methods customers will use and choose a service provider that will accept as many methods as possible. However, online retailers who depend on sales to increase their bottom lines must also consider the processing fees incurred through using a merchant account. Providing multiple options, such as accepting both PayPal and credit card payments directly through the website, gives consumers choices and peace of mind when shopping online.
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