Online payment is an important part of business done on the internet. The various ways of payment represent the principle source of revenue of online commerce.
From a simple credit card to intermediaries, the different methods that e-commerce businesses rely on have different characteristics: ways of being billed or security for example.
Types of e-payment methods
A credit card can be considered as the basic online payment method. It requires the use of the card security code as a security option. However, customers do not always trust websites asking for their card’s information. Paypal acts as an intermediary for such customers. It allows them to store safely their information and will not divulgate it, while vouching somehow for the transaction funds during a check out process. There is also a method called “Internet+”, mostly used in microtransactions, where the customer pays for the purchase on his internet or mobile phone bill.
Advantages of online payment
In some cases, the anonymity that some payment options offer is a good advantage. There is the possibility in most cases to verify that the same purchase is not done multiple times. The purchases can be done anywhere; the only thing needed is the website. The availability of method of payments depends of the business, but the common means are nearly always present.
Disadvantages of online payment
Even if most businesses are serious about security, one can never be sure. Security, by encryption, of the transaction must be checked. Confidentiality stops at the bank, since it has to maintain all information about every single transaction done.