The most disturbing aspect of starting an online business, export business or even start a small scale business is to know the best method of receiving payments online.
Choosing the best payment method is important because it affects the conversion rate of customers who are actually willing to purchase. This simply means that many customers may want to buy from you but get disappointed or frustrated by your payment method which they may not have.
Therefore, the secret of getting customers who will readily and easily pay, is by getting a popular payment method that the customer trusts and is easy for them to use. Ideally, every online business is to have a wide coverage of different payments method to give its customers options of the one to use.
Also, choosing a good payment method is not only to favor the customers but should also have advantages it confers to the seller. In that case, a good payment gateway or method should be cheap, easy to setup, have security against internet fraud, finally, widely accepted and used.
Therefore, when thinking of having an online store, export business, freelancing services, Dropshipping business or any online business; consider the perfect payment method that will suit your business.
When considering good methods of payment online, attention should be paid to the following factors;
- Processing duration of the method.
- The security level of the system.
- Fees per transaction.
- Coverage area of their services.
- How effective is the support team in resolving issues.
So, we will look into some of the best methods of payment online for your business.
Ways To Receive Payments Online
These methods are not a comprehensive list of online payment methods. However, they are the common ones that your customers will trust and find secure for their transactions. On the contrary, if you have any other method that is secure, user friendly, less service fee and fast payment processing – you are good to go with it. Meanwhile, below are few popular payments online gateway;
1. Square payments online
Square is one of the most popular eCommerce payment method online. This is because square services is versatile and extends to different countries. In addition, there is no fee for registration and no monthly subscription. They charge 2.9% + $0.30 per transaction.
Again, square has a very reliable Point Of Sale ( POS) services which makes it the perfect match for someone who will want to set up an offline business in addition to the eCommerce business.
In addition, square transactions does not waste too much time before you receive your payment in your home country. The maximum time that an online payment takes to deliver is 36 hours or 1-2 business days of a transaction.
Finally, both the square hardware and software tools are highly secured from hackers. The payments are encrypted from end to end, meaning that your customer card details are safe from third parties. Hence, square takes the responsibility of designing and maintaining the services of this payment option.
2. Paypal payment method
The paypal payment gateway is a brand most people are conversant with. Therefore, incorporating Paypal as one of your payments method online will help improve the integrity of your business. With that, customers can easily feel safe paying for your products without fraud.
One of the importance of using Paypal as a payment gateway is because of its versatility, meaning that, it is common in so many countries. Simply put, Paypay boasts of serving 202 different countries with 25 different currencies. Though, Currency conversion fees may apply.
Secondly, Paypal does not accept any registration fee nor a monthly subscription. However, the fee per transaction is 2.9% + $0.30 ,just like Square.
Also, the set up of the paypal online payment is pretty easy and simple. In addition, the security of paypal to your customers and your business is second to non.
On the hand, its disadvantage is that customers have to leave your website to conclude the payment at the paypal site. This is a disadvantage because customers may loose interest navigating from one site to another.
However, the Paypal pro solves this problem by allowing your customers to make the payments in your website. But, there is an additional $30 monthly subscription fee with this plan.
Paypal pro is available for Merchants in UK, US and Canada.
3. Stripe Payment gateway
Stripe was invented in 2011, and since then have grown so vast to accommodate millions of users around the world.
The Stripe payment method builds the most powerful and flexible tools for internet commerce. Stripe serves 39 different countries that can receive payment from online transactions all over the world.
However, the disadvantage of this payment option is that it is not common for African and Asian merchants. Therefore, there services are limited to US, Canada, Australia, UK and Many European countries.
On the other hand, one of the advantages of Stripe is that it allows your customers to make the payments still on your website. It also has a very reliable and relatively strong security system that protects its users from fraud.
There is no registration fee nor monthly charges. The fee per transaction is 2.9% + $0.30 just like Paypal and Square.
Additionally, Stripe payment processing is pretty fast and does not exceed 2 working days. Also, you can set your account to be receiving payments weekly or monthly as you desire.
4. Payoneer payments online
Payoneer is another payment gateway that is very popular among businesses and merchants. It is a global payment service that offers receiving accounts the ability to receive local bank transfers from companies and marketplaces in the US, UK, EU, Japan, Canada, Australia and Mexico directly to your Payoneer account.
In that case, Payoneer provides local receiving accounts in USD, EUR, GBP, JPY, CAD, AUD & MXN that will allow you to receive payments from these currencies free of charge, aside from USD that is 0 – 1% depending on the country.
Not only that, Payoneer can receive payments from different currencies and transfer to your local bank account. Though your local bank will charge you for the transaction.
Also, Payoneer allows its users to do transactions among themselves, free of cost. However, Receiving card payments from all over the world is 3%, while, ACH bank debit (USD) is 1%.
Payoneer also have Credit/Debit cards that can allow you withdraw from ATM centers around the world.
The registration is free and does not require monthly subscriptions.
5. Amazon pay
Amazon Pay is a service that allows merchants to accept payments for their online business from Amazon account owners. This option is good because it allows the business to benefit from ease payment from millions of Amazon account users. In other words, this payment method is quite simple since the customer does not need to create a new account or supply any additional detail to the third party website.
Hence, we can say that this payment method is also relatively safe for customers from Scammers.
In addition, Amazon pay does not have charges for both local and foreign payments from customers.
Finally,the seller or the business using Amazon payments receives payment in your bank through an Automated Clearing House (ACH) or electronic funds transfer. After your Amazon payments are initiated, the funds typically take 3-5 business days to arrive in your account.
6. 2Checkout payment gateway
The services 2Checkout offers to eCommerce owners are numerous and includes payments for dropshipping, online shops, receiving payments for services such as Fiverr and Google e.t.c.
2Checkout is very popular for eCommerce because of its versatility as a global payment gateway for many businesses such as Shopify. Hence, the 2checkout accepts multicurrency payment for people from different parts of the world.
Also, the security of this system is very okay and they have up to 300 measures kept to reduce and abolish fraud to their customers.
Most interestingly, 2checkout account setup is very easy and simple to set up for your online business store as a gateway for receiving payments online.
To start using 2checkout, there is no fee for set up or hidden fees for fraud protection or anything. However, there are many packages that requires monthly subscriptions for the services.
Basically, 2sell package which is the most widely used package charges 3.5% + $0.35 per successful sale. This charge is the same worldwide, except in some specific countries where an additional 2% fee applies to accept payments from shoppers outside your own country.
Authorize.net is a payment gateway as well as a merchant services provider. However, unlike so many other payment gateways, this platform has an outstanding security profile.
This is achieved through an Advanced Fraud Detection Suite which includes 13 configurable fraud filters designed to help you identify, manage and prevent costly fraudulent transactions. These filters includes Velocity filter, IP filter, transaction filters, shipping filters e.t.c. Therefore, safety of the platform as a method of receiving payments online is guaranteed.
However, their charges are expensive when compared to others. Authorize.net charges $49 for setup fee and a $25 monthly gateway fee which is not common to other platforms. In addition, users pay 2.9% plus $0.30 per sale and an additional 1.5% for International transactions.
Therefore, this method of receiving online payment is advantageous to businesses that have plenty customers and require the need for a good security. On the contrary, small businesses may not do well using the method of payment since they may not cope with the charges.
Finally, they have an integrated Customer Information Manager (CIM) which allows you to manage and retrieve information with regards to your customers easily. In that regards, Customers can save billing, payment and shipping information on file for future orders.
This platform is another great gateway to which you can receive payments online for your stores or businesses.
Webmoney as the name implies is a global firm that helps in all online transactions which includes; loans, payment of utility bills, making and receiving payments online. These different payment methods comes with plenty features in which you can pay or receive payment using the webmoney payment gateway.
Additionally, the webmoney setup is easy and is cool for individuals who do not know much about programming and coding.
The services offered by webmoney covers assurance of good security system for both the buyer and the seller against any form of Fraud.
Also, the transfer fee of webmoney is relatively low. They charge 0.8% of the payment amount for every transaction, but not less than 0.01 WM. Again, Webmoney does not charge a fee for transactions between purses of the same type and belonging to the same WMID.
9. Google pay
Google has been trying to make things easier through so many ways by synchronizing in your data as a piece. This means that your email, your browser, your card details, your contacts, social networks e.t.c. is all in one piece with just a google account.
As a result, most people now use one or many of these google services. The Google pay option is just one of those features you can get from google.
Therefore, it is a good payment gateway that customers may find very comfortable with, if you included it as a payment option in your eCommerce site. With Google pay, customers can use QR codes or their phone number, to send money from their bank account to yours – no POS system required.
Also, there is a 24/7 support assistance to help detect fraud, prevent hacking, and verify identity. The Help Center, phone, and chat support are available at all times in case you need help.
In terms of cost, Google Pay is one of the cheapest services on the list — there are no fees to use debit cards or make bank transfers, though you will pay a 2.9% fee for credit cards.
10. Wepay payment gateway
WePay helps businesses get paid easily in the software and apps they use every day. They charge Merchants 2.9% + $0.30 for transaction processing per sale.
The security level is relatively safe and is good for both small and large businesses.
In summary, there are many more payment gateways you can use for your eCommerce, but the ones listed above are more familiar with customers and commonly used.
However, you can do your research on any of them and decide the ones that suits your business most. Also, it is better to add more than just one method of receiving payments online to create choices and ease for your customers.