People in the modern, internet-centric society are accustomed to conducting all aspects of their lives online, including socialising, shopping, and even paying bills. That’s why more & more businesses are readying themselves for accepting online credit card payments.
In this article, we will talk about the online payment process and will address concerns like, “can i transfer money from credit card to bank account” in detail.
Advantages & Disadvantages of Accepting Payments Online
Let’s look at the possible roadblocks to accepting online payments before we go into the solution. You may already know the benefits of accepting online payments. First of all, they’re practical for both you and your customers.
Sending invoices and collecting payments online can be automated, relieving a significant burden and making it simpler to expand your business. Payments are made more quickly as a bonus. There is no waiting around for funds to clear when using digital payments.
The Downsides of Online Payment Processing
With all the advantages, why wouldn’t you want to take payments online? A few potential drawbacks are as follows:
- Problems with the technology. Payment processing software has problems just like any other piece of technology. Depending on the nature of the technical problem, you may temporarily lose the ability to process payments during this time. While bugs are usually fixed promptly, they may cause some inconvenience while being fixed.
- Risk of deception. There is a risk of fraud when accepting payments online because you cannot visually verify the customer’s identity or the validity of the payment method (for example, a stolen credit card). Credit card numbers and other sensitive customer information gets stolen in data breaches.
Steps to accept Online Payments to Scale Faster and Smarter
Once you accept payments online, you’ll have to tie up with a payment processing company. Choose the forms of payment you’ll accept and how you’ll collect them. When everything is said and done, you’ll have to let your customers know about it.
1. Tie up with a Payment Processing Service
If you want to take payments online without any hassle, make sure your chosen payment service provider offers the following:
Your consumer, their credit card company and your merchant account all connect over the payment gateway. The payment processing infrastructure sits between businesses and their clients, ensuring their data is safe, and their deals are legit through encryption and authentication.
The payment gateway connects to your website and invoicing software to manage your online payments. It processes payments difference between credit card and debit card and transfers money from the buyer’s account to your own. Square and PayPal are two of the most well-known payment gateways.
Credit and debit card transactions are deposited into your merchant account. Online payment systems typically necessitate it. You can open a merchant account with a bank, but many online payment processors, such as Stripe, include merchant accounts at no extra cost.
2. Decide the forms of payment you’ll be accepting.
Knowing the kinds of payments, you plan to accept is essential when searching for a suitable merchant account and payment processor for your company. Payment methods like PayPal and online credit card payment count as well.
3. The third step is to determine how you will accept payments.
Whether or not you offer many payment options to your customers, should be a part of your business strategy. Typical forms of payment include:
- Purchases are made based on invoices. A payment link will be included in the digital invoice you send to your customers.
- Continuous financing. You can charge customers automatically for subscriptions or other ongoing charges rather than bothering them with an invoice.
- Mobile money transfer. Customers can now pay you instantly via their mobile devices. Mobile payments are a terrific option if a customer wants to pay in person but without making physical contact.
4. Inform Your Customers
There needs to be an announcement made to customers once the online payment system is live and accepting payments. Here are some suggestions for spreading the word:
- Sending out a mass email to all customers.
- Including a note and specific instructions on upcoming bills.
- Implementing a “payment choices” page or FAQ on the website.
- You can also help answer consumer inquiries by setting up a firstname.lastname@example.org email address for customer service.
Also Read: How to unblock your Credit Card?
There are primarily three distinct methods of making a purchase online.
There are various online payment options available, some of which will be more practical for you and your customers than others. It’s possible to accept a variety of payments through the internet, including the ones listed below. Either way, electronic funds transfer system (EFTS) is a simple and quick way for clients to authorise online payments and for you to get reimbursed. That said, there are a few catches:
- Customers may feel uneasy about providing sensitive information, such as their bank account number, to their bank or payment processor.
- There may be charges associated with some electronic funds transfers, either to you or your customer.
- Acceptance of credit and debit cards.
- Accepting credit card payments online makes sense for several reasons.
- This method of payment is one with which most people are already comfortable.
- Setting it up is a breeze.
- It’s a win-win for you and your customers. Customers may pay quickly and easily with only a few clicks, and you can start accepting payments immediately.
Thus, online payments are safer and easier.