If you are a merchant and you want to accept payments online, note that there are two main methods for online payments – credit or debit card payments, and direct debit payment. Accepting payments online can be seamless when taken directly from your customer’s bank account, credit, or debit card with just a tap, or through an all-in-one payment system.
With the transition to contactless payments and a cashless society, our reliance on credit cards and online transactions are ever-increasing, so it’s time to make the switch to accepting online payments. Read on to find out the available options you have for online payments.
Credit or Debit Card Payments
Credit card and debit card payments are probably the most common options for accepting payments online as they’re fuss-free and convenient. They’re the easiest options for processing and collecting payments on the go so the wait isn’t exactly too long, plus credit cards are usually accepted by most merchants across the globe so it’s user-friendly and extremely handy.
You’ll need to set up a merchant account and payment gateway before you can proceed with credit card transactions. A merchant account is basically an online bank account that accepts both credit and debit cards during payments. It temporarily stores your money, either received or refunded, until it is moved to your business account. Merchant accounts include banks like HSBC.
On the other hand, a payment gateway acts like a credit card machine that connects your website to other processor networks. When your customer is purchasing a product, he/she will have to submit their credit card details. Remember that external page that you’re led to when you’re making an online payment? The payment gateway will then inform you, the merchant, about the successful charge and transaction. Examples of payment gateway include Millennium Payment Systems!
Direct Debit Payments
Direct Debit is also another option to accept payments online. While cheaper to take payments, Direct Debit will not be suitable for you especially if you run a fast-paced business, such as an F&B or a food truck on the go, and require instant payments.
Start by speaking to your bank about your preferred mode of accepting payment. There is a software that you might need to use, so do check with the approved ones to see which are suitable for your business.
Payment Service Provider
If you’re uncertain and unsure about which online payment mode you’d like to use for your business, or you simply have no time to set up seemingly endless accounts by yourself and familiarize yourself with the complicated processes, you can consider using an external payment service provider, or a payment processor, to help with your transaction and payment needs.
Depending on the service provider, most act as the merchant account and payment gateway which easily allows you to accept any sort of payment online, without having to require a separate merchant account. This saves time, and maybe money when setting up accounts, but fees will be required when engaging these external payment service providers.