The online world has changed the way people buy and sell products. With the increase in online shopping, it’s important to have a variety of payment options for your customers. This article will explore some of the most popular payment types and their advantages and disadvantages.
ACH Payments
ACH payment is a cost-effective option that can be set up quickly. With this option, online payments are easy to set up and are available 24/7. ACH payments also allow your customers to feel more secure when processing a payment online, as they run through an established financial institution.
However, like most online payment methods there are some potential downsides to processing an ACH payment. For example, ACH payments can be slow at times. They take 3-5 business days for funds to be transferred into your account. This may be acceptable for some businesses, but others may want to consider adding other options on top of ACH.
Blockchain and Cryptocurrency Payments
One of the major hurdles in the way of online payments is the integration of different payment types. Blockchain technology has helped to address this problem by providing a platform for a variety of payment types to be accepted. Blockchain and cryptocurrency payments are perhaps the most exciting way businesses are processing payments online in the new world.
The blockchain was originally developed to serve as a public ledger for Bitcoin transactions, but it can also be applied to other kinds of transactions. This new technology has created an opportunity for businesses to accept payments from customers all over the world, regardless of their financial situation.
Blockchain has many benefits over traditional payment methods like credit cards. The blockchain is decentralized which means that there are no banks involved in the transactions, making it cheaper and faster than traditional methods. It also provides better protection against fraud because consumers have complete ownership of their money at all times, however sometimes the fees can be high.
Credit Cards and Debit Cards
Of course, you can always accept payments from credit cards and debit cards, as they are some of the most reliable payment methods, even with new payment processing systems on the horizon. Debit and credit cards give consumers confidence when paying online, as most credit card companies back up their transactions. The same goes for many popular debit card issuers.
There are some disadvantages here as well. The most popular downside to credit card payments is the processing fees that businesses have to pay. If you are okay with taking on these costs, then credit card payments will work for you.
It’s also important to note that some credit card issuers and debit card issuers may not be authorized in certain regions. This can dissuade would-be customers from doing business with you online. Keep this in mind when you are deciding which payment types to offer.
Online Merchant Payment Services
Merchant services and payment gateways are a great way to help customers pay the way they want while also minimizing the hassle for the business owner. Some common examples of online merchant payment portals include Paypal, Stripe, and Venmo. These brands come with a strong reputation that allows your visitors to process a payment online without having to worry about where their money is going.
With online payment gateways and merchants, you give your customers flexibility. However, there are some unique disadvantages to these systems when compared to ACH payments. For example, a merchant may place certain restrictions on a customer’s payments depending on their cards, accounts, or geographic location.
When you are starting an online business, it is important to think about how you will be accepting payments. You will have to figure out what payment types your customers are most likely to use and then create a way for them to pay with that type of card. By offering several payment types, you are likely to appeal to a broad range of consumers.
