ePayments: Which to Choose

Online businesses use their sites as information destinations and also to sell their products. When it comes to making the sale, customers need to know which forms of payments you accept. In eCommerce, there are several choices for you.

When you walk into a store, you want to know if they will accept your currency. Most places in the United States accept credit cards, in particular, Visa, MasterCard and American Express. Local businesses accept checks, credit or the almighty dollar.

Answer this question: Where will your business be conducted? Anyone whose business is open to international buyers will want to consider their payments closely so that no customers are alienated. To that end, here are some popular forms of payment.

Credit Card Payments

As we said, many people accept plastic. If you want to, display it prominently on your checkout page. One thing to remember with credit cards is that fraud does occur. You could wind up with charge backs because of fraudulent or unsatisfied customer situations.

When accepting credit card payments, the business owner needs to create a merchant account with a bank. The bank processes payments between the merchant’s business and the customer’s bank for a fee. Compare bank policies on transaction fees and charge backs before choosing where to open your merchant account.

Using credit cards is considered a B2C transaction. This means that the transaction occurs between the business and the customer.

Third Party Payments

Payments that use a third party to complete the transaction are typically P2P, meaning person to person. This is how it works. When the transaction is made, a third party takes the money from the buyer’s account and deposits it into the merchant’s account. A popular example of this is PayPal.

Anyone can set up a PayPal account for free. All you need is an email address associated with the account and an actual bank account to link to it in case of low funds in the PayPal account. Most customers doing business in marketplace-type settings have this type of account.

Money is transferred without any personal financial information changing hands. The transaction takes place in real time so the business owner knows that the funds are there and the products sold are paid for. Merchants have options when using PayPal to set up their merchant account. Currency exchange is offered so international buyers or business owners receive payment into their account in their native currency.

Payment type is a consideration when doing business online. Accept payment forms that are widely used but provide you with the greatest confidence and least hassle. Everyone doesn’t believe that the check is in the mail.


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