Online shopping has grown into a major part of the economy and is competing with retail stores for business. Today, most stores have websites that make it easy for their customers to purchase a wide variety of products and services. Before you can use this option, though, you have to choose online payment options that will work well for your business.
Payments from PayPal
PayPal’s online system gives retailers and small businesses the opportunity to accept payments easily without much hassle. PayPal’s services not only let you accept payments directly from your customers’ PayPal accounts, but also from credit cards and bank accounts.
Security is one of the biggest advantages of using PayPal. Many customers and businesses claim that they feel safer using PayPal because the company serves as an intermediary. Instead of paying directly, your customers send money to PayPal, which, in turn, sends money to you.
PayPal charges a small service fee for transfers. The more your customers use the service, the more you have to pay for it. This, however, is typical of most online payment options.
Credit Card Payments
Credit card payments also offer a safe way for customers to purchase items online. In order to accept payments you will need a credit card processing service that ensures you get paid.
Credit card payments work well for many businesses because their customers are accustomed to using this payment option elsewhere in their lives. Not every customer, after all, will have a PayPal account. Nearly everyone has a credit card.
Most customers also feel safe using credit cards to pay for their purchases online because they know that their credit card company protects them from fraud. If mistaken charges show on their accounts, then they can dispute them for refunds.
Most credit card processing services also charge a small percentage for each transaction. You should, therefore, explore several options to help ensure that you choose one that helps you save money while providing reliable services to your customers.
Electronic checks are useful for customers that do not have credit cards or PayPal accounts. Most online retailers, however, find that this is a very small percentage of their target audience. Electronic checks have never become very popular for online retailers because they are seen as inconvenient options compared to credit cards and PayPal.
Although you might find that electronic checks are inconvenient, they do offer some advantages. By using this option, you can attract customers that don’t use credit cards. This might be a small number, but they have few options when it comes to online retail outlets. That means you have less competition.
Electronic check processors usually have low fees that can help your business save money. Like PayPal and credit card processing, they charge for their services. Yet, the fee is usually quite small.
Many online retailers offer their customers several payment options. This helps attract more customers by letting them choose the payment method that they prefer. Instead of making the decision for them, you let them choose an option that suits their lifestyles.