Dropshipping: Online Payments for Small Business Owners
Speaking Chinese in a Marrakech market or using an online payment processing system that doesn\’t handle the payment methods your consumers prefer are both unlikely to result in a successful transaction.
The point-of-sale system of a business must also be able to communicate with customers\’ payment methods in the same language. Online retailers and brick-and-mortar retailers have various payment languages. For this reason, it\’s crucial for e-commerce companies to be proficient with online payments.
What are payments made online?
Online payments are the different kinds of payments made and handled online. These include payments made with a mobile wallet, credit card payments, ACH payments, and wire transfers.
Although the payment processors used for online and in-store transactions may be the same, the point of sale (POS) is different in each case. The physical checkout counter is the point of sale (POS) for an in-store transaction. Your software payment solution is your point-of-sale system, and for an online payment, POS is an online payment interface.
Businesses can utilize online payments to pay invoices or cover payroll costs in addition to taking payments from customers online.
How payments do made online work?
Online transactions involve a customer, a seller, and each party\’s financial institutions. Partners in payment processing like PayPal, Zelle, or Square may also be involved.
By payment method, online payment procedures vary. Here\’s an example explanation of how an ACH debit (automated clearing house debit) internet transaction operates:
A customer makes a transaction and chooses to pay with an ACH debit.
The ACH debit request is sent to the merchant\’s financial institution by the merchant or a third-party payment processing partner.
The transaction is bundled with other ACH transactions by the merchant\’s bank.
The batch transactions are received by an ACH operator, who sorts them before sending them to the customer\’s bank.
The payment amount is credited to the merchant\’s account after the transaction is processed by the customer\’s bank.
5 distinct methods of online payments
• Paying with a credit card
• ACH transfers
• Debit card
• Transfers through wire
• Electronic wallets
Online payment methods come with a variety of advantages for both customers and businesses. Cost, speed, security, and customer base popularity are among the variables.