Payment Processors, Methods and Processes
Given below are other payment methods that are considered alternative to credit card payment.
Electronic money – Electronic money is also called digital cash. It often involves electronic funds transfer or the process of transferring money from an account to another. This process may involve a single or multiple financial institutions. Frequently, the merchant will debit the bank account of the consumer to pay for the goods or services that the purchaser orders.
Electronic cheque/check – Some online stores require the use of electronic check in paying for the purchased good or service. Electronic checks are required when the purchaser has no credit, debit or smart card. Aside from the account number, the routing number must also appear on the check. There must be a digital signature as well to validate the payment.
Debit card/smart card – Debit and smart cards are like electronic wallets. These cards are usually loaded with a specific amount with which the user may utilize as online payment. The stored value will depend on the issuing financial institution. Some online stores prefer debit and smart cards than credit cards because payments can be immediately transferred from the designated bank account of the cardholder.
Wire transfer – Wire transfers are a form of advanced payment. After the order has been made, the customer has to pay the total amount into the merchant’s bank account. After the merchant has verified the payment, which may take a few days, the order will be shipped to the shipping address provided by the purchaser.
Postal money order – Money orders are used in sending money through snail mail. Some online stores treat money orders like cheque/check or invoice. The difference is that when the purchaser makes an order, he or she is provided with 30 days to fulfill the payment. Some online stores are using money orders if the customer lives within the country where the business operates. To make the process more secure, online stores allow customers to send money orders if they have previously transacted with the store or after the store had run a thorough credit check on the client.
Cash on delivery (COD) – After the customer had made an order, the merchant will have to contact a delivery service provider to ship the order to the customer’s shipping address. The delivery staff will be instructed not to hand the order to the customer unless the customer pays first. The delivery staff will receive payment in behalf of the merchant. The customer may only check the order after payment has been made. There is a delivery service charge that may be shouldered by the merchant or the customer depending on the agreement of both parties. You may want to visit this article to know more.