If you’re like most businesses in the past years, you have probably collected payments mainly through cash or checks. Now, in these modern times, you may be looking for a way to offer your customers a safe and easy way to pay online (which is the most convenient in these trying times).
All payment solutions/payment processors aren’t created equal, so you might want to stay in this article, and get some idea of the ins and outs of how an online payment system works, from start to finish. I mean, who doesn’t want to avoid pitfalls?
Add extra knowledge to you and protect and grow your business.
Main players in an online payment:
You and your customer are the main members of the cycle. To accept payments from customers online you need two things: an internet/online merchant account and a payment gateway.
How it goes:
Once you have those things in check. Here’s how it goes.
For example, a customer will make a purchase online on your checkout page or online business page, by submitting their payment information. After that, that information is sent to the payment gateway. The gateway then encrypts the payment information and relays it to a series of approved payment processors and networks for approval/authorization, where the payment is either accepted or not accepted. That verdict of information then travels back to your customer.
Did you know that all of that processes and series of activities only take up seconds? Amazing isn’t it?
The final step occurs after the payment gateway sent the transaction to the payment processors (e.g PayPal) and then the money will be transferred from the customers’ bank account to your account.
So now you know that a payment moves through several loops often with varying providers with each transaction. Since things can get really complex and hard for some, many fintech companies offer seamless payment solutions that are all bundled up together. Easier, and secured for the people.
It is a fact that there are all kinds of payment solutions out there. But, before you make a decision to choose the best payment solution for your business, make sure that the solution you will be choosing provides undeniably solid answers to the following questions:
Is it secure?Is it reliable?Is it easy to use?
These questions will help you attain that answer that is needed for both sides of the party (your business and the customers). When making this important decision, it is worth the time to look for a payment solution that offers security, reliability, and ease of use, as it is gonna be working on both sides. In fact, it’s like a give-and-take relationship. A harmonious one, between your business/you and your customer.
With these kinds of optimistic things, you can expect to get high marks from your customers as your business dive more, through the world of digital payments. Fascinating isn’t it? You and the digital world.
Reference:
“Understanding Online Payments.” YouTube, 26 Apr. 2012, https://youtu.be/gG5kLlfZcik.
Understanding Online Payments: You vs Digital World was originally published in Piccopay Pte. Ltd. on Medium, where people are continuing the conversation by highlighting and responding to this story.
