Accepting Payments Online has become trending nowadays for the use of cashless business transactions. For the business, there are lots of advantages of using it.
Many companies have already realized that the pandemic is not a hindrance to sales if they reorganize. Business is shifting its activities to online because this is where most of the buyers “live” now. The main selection criterion is the minimum commission and the ability of the buyer to choose a payment method that is convenient for him. Let’s see how a customer can proceed to the checkout stage on your website?
In this article, you will find out all about online payments and their advantages to your business.
Electronic payment systems: what is it?
An electronic payment system is a complex of equipment, programs, and information networks. It provides one or more payment options:
- bank cards;
- electronic money;
- direct transfers between users;
- online payments
Additional functions: currency exchange, personal transfers, withdrawal of money to a bank account.
Online payment is available to individuals, commercial and financial companies. With its help, an entrepreneur or organization accepts payment through the site. The process is automated: the formation of the account and the implementation of the transaction are provided by the system.
Features of electronic payment systems
Online payments are its own Central Bank. It combines the functions of a technical operator and a supervisory authority. When making payments via EPS, only electronic money is used.
Electronic money is an element of mutual settlements through EPS. The client of the payment system gives his money. After depositing the currency, the operator credits the client’s electronic wallet with an equivalent in the same electronic currency.
Algorithm of the electronic payment system
EPS work is reminiscent of traditional banking operations. Users have an electronic wallet or card for virtual cashless payments.
Modern payment systems work according to the following algorithm:
The client sends real money to the operator’s account: transfers from a bank card, throw cash through the terminal, etc.
The operator converts them into electronic currency, charging a commission.
The client uses the money at his own discretion: he pays for watching a movie in an online cinema, orders a phone case from AliExpress, orders food. To do this, the seller must use a similar EPS or aggregator.
The seller receives a fixed amount in electronic currency.
The seller can exchange electronic money for real: withdraw it to his bank account by paying a commission to the payment system and the bank.
While Accepting Payments Online, Some electronic payment systems issue their own plastic cards. With the help of them, the owner of an electronic wallet can pay at retail outlets equipped with POS terminals, as well as withdraw money from an ATM.
Types of electronic payment systems
The following types of electronic payment systems are available to accept payments online to users and business representatives on the network: Let’s know before knowing Accepting Payments Online.
Card (processing) payment systems
They interact with a large number of banks and processing centers. These EPS support different cards: Visa, MasterCard, Mir, American Express, etc.
During the payment process, the bank card number and the ability to conduct a transaction are checked. Card online payment provides communication between the bank that issued the client’s card and the bank that accepts payments to the merchant’s account.
After checking and receiving confirmation from the client’s bank, the system withdraws money from the buyer’s card and sends it to the seller’s bank account.
Electronic wallet systems
While accepting payment online, These wallet systems allow you to pay with electronic money that users store on wallets (for example, PayPal or QIWI).
To organize the acceptance of payments, each electronic money operator provides its own tool that connects to the site. The money goes to the seller’s electronic wallet or to the current account of his bank.
Payment intermediaries and aggregators are universal electronic payment systems. They offer customers to pay by credit card, electronic money of different operators, cryptocurrency, and other methods. Aggregators channel customers’ money through their own accounts, rather than transferring directly to the merchant’s account.
In order to implement online payments into your business, you will have to find a proven and reliable payments partner.
Advantages of online payments for your business
- Minimum emission costs;
- They are not subject to wear and have no expiration date;
- Can be used anywhere and anytime, without reference to the location of the participants in the transaction;
- High speed of payments and transfers;
- Confidentiality of monetary transactions;
- Transparent transactions and access to the entire history of electronic payments;
- No need for change;
- Safety and security of means of payment;
- You don’t need to count and transport banknotes;
- Your money is stored on electronic media and does not require additional space;
Conclusion
Accepting Payments Online is popular worldwide and has lots of benefits for the business. Online payments simplify online purchases for customers and help businesses expand the reach of their target audience and increase sales. If you have a commercial site for the sale of goods and services, make sure to sign an agreement with EPS and connect the possibility of online payment for your customers.
