Online payments have become a mandatory feature for online stores. About 90% of Internet users have paid for goods and services online at least once. In this article, we will analyze how to choose a payment system for the site and start accepting payments from customers via the Internet.
Features of Online Payments
Such a transaction with systems like PayPugs is made via the Internet without the use of cash when the client purchases goods or services. They can be made on the websites of online stores, in mobile applications, through special forms, etc. It usually looks like this:
- The client selects a product or service on the website/in the application/on the seller’s page on social networks and then places an order.
- The buyer proceeds to pay for the order and enters the necessary payment details – for example, a bank card number, its validity, and a CVV code.
- A bank or other financial institution confirms the availability of the required amount of money in the client’s account. Often, it might be necessary to confirm the transaction with a code from an SMS or push notification.
- The seller confirms the fact of the sale, the money is transferred to an account.
More from Guides
- 5 Marketing Strategies For Cat Food Businesses
- The Rise of ESG Traders: What Recruiters Need to Know
- How Does CRM Data Drive Personalisation?
- 6 Reasons Why Entrepreneurs Love VoIP
- 6 Alternatives To Notion For Project Management
- Extra MVP: How to Start Using Software, Even When It Is Under Development
- What Is Google’s Veo3?
- 6 Alternatives To CapCut For Video Editing
Online Payment Methods
There are different ways to pay for purchases via the Internet. Many systems for sites allow site owners to connect a variety of methods so that the client can choose the most convenient one:
- Bank cards. This is a transfer of money for a purchase from a card account to the seller’s account. It involves a bank and a processing company responsible for accepting payments on the site. This method is familiar to most users.
- Electronic wallets. The customer needs to have a wallet registered with the relevant service with a sufficient balance to complete the purchase.
- Payment from a mobile phone balance is often used in games and mobile services. For such a transaction, the client needs to indicate the phone number for debiting and then confirm it according to the instructions in the SMS from the operator.
- Internet banking. The transaction is made through a personal account in Internet banking or mobile banking, confirmation via SMS is often required.
To accept payments for your goods or services, you need to connect the system to the site, application, or other resources that you use to trade.
How the Systems Work
A payment system for an online store is a service that ensures the receipt of payments on the site from customers and the transfer of funds to the seller’s account in automatic mode. Usually, systems charge a commission for transactions, but they significantly simplify the process for both the business and the buyer.
There are two main ways to set up money transaction acceptance on the site:
- Internet acquiring services are provided by many banks. Transfer of funds to the seller’s account occurs through the processing center on the next business day. To connect the service, you will need an agreement with the bank – you will need to collect a package of documents and wait for the verification procedure to complete. The commission for small businesses is usually quite high, but the funds are transferred instantly. In addition, banks care about the security of transactions. Reliable banks have ready-made modules for CMS and API integration, which simplifies the process of the connecting system to the site.
- Payment aggregators allow you to connect different methods by concluding just one contract. The client chooses how the payment should be effected: by card, from an electronic wallet, through an Internet bank, or in some other way. Aggregators also charge a commission for their services, and its size may vary depending on the type and turnover of the business, payment methods, and tariffs of the service provider.
Aggregators are good for a quick start since you can create a payment system on the site in 2-3 days. Paperwork and integration with the help of ready-made payment modules are fast.
Thus, organizing a system for accepting payments on your site is quite simple. Its functionality allows you to make purchases quick and convenient for customers, which will increase loyalty to your store. In addition to the variety of payment methods, the advantages of aggregators include quick connection and easy integration with online cash registers to generate fiscal receipts.