7 of the best online payment methods

US-PDGov

By James Green

Online payment solutions are a necessity for the existence of online businesses. However, they are also useful for so many other things.  For example, you can easily shop online, pay a bill, use online bill paying through a bank, make electronic payments and so much more with just a couple of clicks. Since Internet shopping and banking is so popular nowadays online payment solutions have also gained a lot of popularity. Here are some of the best online payment solutions that are trustworthy and can really do the job for you:

1. PayPal

This is the most widely used online payment solution in the world. It processes billions every year. You can set up a PayPal account for free and fund it through your debit card, credit card or bank account. It is all up to you and you can easily make payments and receive money at low fees.

2. Payza

Payza was formerly known as Alertpay, but the name was changed in May 2012. This global online trading platform specializes in processing of e-commerce deals. You can transfer funds from your bank account and to it easily through Payza. However, there are specific regulations that apply for different countries.

3. 2Checkout

This is a payment processing service for online transactions that combines a payment gateway with a merchant’s account for simpler integration with a website. 2Checkout provides a dependable, reliable, highly secure and affordable payment option for medium and small online businesses.

4. Moneybookers

This is an e-commerce business which allows money transfers and payments through the Internet. Moneybookers allows the receiving and sending of payments from and to 200 countries and in 41 different currencies. It also supports all the major credit and debit cards as well as more than one hundred local payment options.

5. WorldPay

This is a leading provider of electronic payment services including checks, debit cards, credit cards, customer loyalty cards, e-commerce, fleet cards and ATM processing. It also offers a lot of cash management services to its customers.

6. Square

Square is a payment processing gateway which supplies its users with a free card reader dongle which can be plugged into every smartphone. It can also be linked to a bank account and then all you need to do is swipe your credit card in order to collect money. It can even e-mail you a receipt. The fee Square charges for each swipe is 2.75 percent.

7. Google Checkout

This is a famous online payment processing service that is aimed at making the process of paying for 

online purchases as simple as possible and is powered by Google. The Google account of a user stores their shipping information, debit card and credit card information for further reference and thus makes the process of shopping online so much easier. All a user needs to do in order to place a purchase in a participating store is click one or two buttons because all the needed information is already stored in the Google account.

James Green's area of expertise is developing online payment solutions (the Swedish term is betalningslösningar).

A Comparison of Fees For Online Payment Methods

Depending on the financial institution and the type of online payment method used, fees for online payments can differ for customers, financial institutions and retailers. For example, wire transfer payments often cost customers more than online bill pay services, both of which are offered by banks.

Online payments on the other hand, can be made to merchants, individuals, creditors and government departments such as he Internal Revenue Service (IRS) for no direct cost to the client, but at a potential cost to the payment recipient. A number of electronic payment systems exist which are used by various organizations and facilitate online payments.

Types of payment systems

• Electronic Fund Transfer System (EFTS)
• Federal Reserve Wire Network
• Clearing House Interbank Payments System (CHIPS)
• Electronic Federal Tax Payment System (EFTPS)
• Debit card networks ex PLUS

Banking online bill pay

Online bill pay services are usually free and are offered by financial institutions in collaboration with corporations such as utility providers. Online bill payments require the entering of billing account numbers and address information in order for the money to be correctly sent to the right biller. Automated withdrawal payments and recurring payments are also often no cost to the payer.

Online credit card payments

Online credit card payments are used by merchants who seek to facilitate customer payments for products ordered over the internet. These merchant accounts allow the buyer to enter in their credit card information to pay for their goods at no cost to the customer. The merchant on the other hand, is usually required to pay a fractional percentage for each sale made using an online credit card payment.

Wire transfers

Incoming and outgoing payment fees may vary for wire transfers as may international wire payments according to Bank of America's fess structure. At Bank of America, customers pay $12.00 for an incoming wire transfer costs and an outgoing wire transfer costs $25.00 whereas outgoing international wires cost as much as $45.00.(5) In contrast, Western Union charges $5.00 for an outgoing wire payment transfer under $50.00.(4)

Online Debit card payments

If a customer makes a payment with a debit card, the merchant may be charged a flat fee instead of a percentage of the sale.(3)  The customer may also be charged a $1-$2 fee for using a debit card depending on whether or not payment is signed for or a pin number is used. Using the credit option for debit payments is more expensive for retailers but more profitable for financial institutions and sometimes cheaper for buyers.(1)

Pay check payments

Some employers may choose to pay employees by making an electronic payment to an savings or checking account. This type of payment may be performed using an online Automated Clearinghouse System (ACH) and is free to the employee.(1) Other institutions may prefer to make free online payments to a debit cards as this reduces the cost of checks and check services.

Sources:

1. http://bit.ly/aYsJ87 (FFIEC)
2. http://bit.ly/ckFlYT (IMRF)
3. http://bit.ly/bfXeFs (Creditcardtrans.com)
4. http://bit.ly/h1UGR (Western Union)
5. http://bit.ly/cyToX0 (Bank of America)