A comprehensive guide to online payment services

by Sukanya on 24/11/2017
If you’re aware of today’s digital shift, you’ll know that transacting in cash is a thing of the past. Even though traditional payment methods like cheque, cash, debit and credit card continue to be used, online payment is gradually taking center stage as more and more business move online. From wallets to net banking, online payment methods are improving significantly in terms of UX and security.

If you’re selling your products online, setting up the correct payment gateways can define how well your business will perform. A payment gateway authorises fund transfers in electronic transactions made between sellers and buyers. PayPal, SecurePay, Stripe and Square are few popular payment gateways that can enable online businesses to transact directly online instead of depending on conventional models.

Fringe benefits of using online payment services

The major advantages of setting up online payment systems in your business are:

Stay ahead: Online payment option delivers a hassle-free shopping experience and saves time. For traditional businesses, they can often enable faster transactions and reduce payment cycle times.

Simpler processes: Since online payments put a part of the onus of compliance and process on the consumer/end user/payer, it typically reduces manual processes for the online businesses and automates the process significantly.

Convenient operation and monitoring: With transactions tracked automatically in case of online payments, sellers and buyers have complete visibility on all purchases and payments. This is a major advantage for newer players looking for a single reference point for all revenue.

Online payment services in 4 easy steps

It’s understood that the money moves from a customer’s account to the merchant’s account on swiping a card. But, how does it take place? And, what is the time taken? Here’s how it unfolds:

Authorisation: The consumer requests a transaction authorized by the issuing bank on availability of sufficient fund in the account. On authorisation, the merchant proceeds with the sale.

Batching: Merchants save on time by storing transaction data and submitting it in batches instead of checking individual transactions one at a time. This minimises the chances of unauthorised transactions and fraud.

Clearing: The batched transactions are forwarded to the card networks which further goes for payment distribution to the corresponding issuer. On clearance, the issuer debits the amount from the consumer’s account.

Funding: This is the last leg where the money is deposited in the merchant’s account.

Now that you’ve a fair idea of online payment services, explore the world of e-commerce. Register as a seller on Amazon with a few clicks. Amazon’s secure and timely online payment services alongside their seller support services enable seamless business operations and helps your business grow. Take up this opportunity and become an e-retailer today.

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