How to receive online payments: what precautions you should take when choosing payment methods for your business
The key information you need to know before you start selling online!
Quite a few entrepreneurs feel insure and concerned to receive online payments. However, the digital product market is growing and with it, new payment solutions and trends, which are faster and safer.
It’s possible to receive online payments through a gateway or payment intermediary, but each of these options have their own pros and cons.
In addition, it is necessary to decide which payment methods you’ll offer to your customers. The more options there are, the better for customers, who can choose which option better suits their needs.
Between the stages of completing a purchase to receiving the amount paid, there are a series of processes, and usually involves various institutions.
In order to understand more about this subject, keep reading our post!
Learn about the main precautions to take when receiving online payments
Nowadays, we as customers, make purchases online in such a simple and automatic manner that we forget about the main precautions we should take.
Therefore, entrepreneurs must concern themselves with a few details so that purchases are safe and so that there aren’t any problems for customers or you when the payment is made.
The first precaution must be regarding the offer of the largest number of payment options as possible so that the lack of alternatives isn’t an excuse for an increase in shopping cart abandonment rate. Try to make the purchase process as easy as possible. This means making it possible for your customer to pay by credit card, debit card, and online bank transfer, for example.
Another key factor throughout the process is professionalism. Having friendly URLs, security seal, available payment terms is the minimum necessary for customers to feel safe and go ahead with their purchases.
If there’s a need for a redirect or the pages take too long to load, users might give up on the purchase.
Currently, there are several tools that automate this process. Finding a safe resource that adapts to your business is important because this type of tool helps you to manage sales and facilitates the experience of both users and sellers.
In addition to all the precautions mentioned, it’s also necessary to consider costs when choosing the options. At this point, you need to find the balance between customer demand and the cost for you. Analyze your market segment, the size of your brand and your audience.
4 options for receiving online
Offering several payments methods is fundamental to increasing sales. Check out the most common ones.
1. Credit card
Credit card use has grown in recent years due to the increase in online shopping. This is the preferred format for many customers, because it’s easy and fast. Also, the purchase is usually approved within seconds.
In addition, credit card companies also offer advantages, such as points and miles rewards, plus support in the event of fraud or card cloning. However, it’s necessary to analyze the rates charged and the dates for receiving the total amount you sold.
2. Debit card
Debit cards are an interesting option for those who make the sale. Keep in mind that this may change from country to country. Payments are practically immediate and this mode doesn’t have the risk of chargeback which is when customers ask for a refund after the purchase has been authorized.
The downside to this option is the high fees charged by banks in most countries.
PayPal is a worldwide online payments system that makes it possible to carry out online money transfers.
It is widely known and trustworthy. Though it’s always a good idea to check their fees and policies, which may change according to each country’s legislation. Also, that way you can plan the impact the fees will have on your business’’ revenue.
4. Online bank transfer
The online bank transfer is a safe option for both parties. The amount is credited directly to the seller’s account and there are no costs to be paid to third parties. The only inconvenience for customers are the possible fees relative to transactions between different banks. That, once again, needs to be verified with each country/bank.
What should a good payment system offer?
There are many payment systems available on the market and each one operates in a different way with different rates. Thus, you should analyze your needs, sales volume and audience and choose the one that best fits your budget.
For example, in the case of digital products, there’s the possibility of making sales abroad, but not all systems receive this type of payment.
In the midst of so many possibilities, it is necessary to look for certain characteristics so that the system chosen is the best for you.
In order to improve online sales, it is necessary to rely on fast systems. A direct connection to make the transactions without intermediaries will help you increase customer conversion and credibility.
2. Transaction convenience
Moreover, a good system offers facility and convenience in transactions for both customers and payees. The system operator should provide periodic payment options and other opportunities so that the entrepreneur can be paid as fast as possible after making the sales.
3. Cash withdrawals
An ideal system allows the anticipation and direct withdrawal from the bank account. In the case of getting an advance, there’s normally a fee charged, but in specific situations, it might be better to get an advance and invest in your business, for example.
The possibility of direct withdrawal from your account is also a fact that does not require you to create an account to receive online payments.
4. Receive online payments in foreign currencies
There aren’t many systems that enable you to receive online payments in foreign currencies. Depending on your business, or what you wish to achieve in the future, it is important to find a tool that accepts payments made with international cards or currency. They will be converted into dollars or euros and deposited directly to the account.
The system must ensure the security of all parties involved in these operations. Therefore, it’s important that the customers’ data be encrypted and that there are confirmations and codes put in place to track the entire transaction. For your own safety, choose systems that protect your brand against chargebacks.
Well, now it’s time to decide how you will receive online payments for your products. Leave us a comment below if you have any questions!