Having a large range of different payment systems is great as customers can pick what they are most comfortable to use. However, some are better than others and may not be suitable for every e-commerce site.
When deciding what payment system is suitable, security should be thought of first. Digital Payment Services have high security because it is anonymous. When the money is sent to the business for a purchase, it’s almost impossible to obtain any personal information about the customer. This is because the security of electronic currency is provided by using encryption. This means that information is very secure and is unlikely to be hacked. In comparison, Electronic Cheques may uphold some security risks. As the computer processes an electronic cheque it means that it is at risk of hackers hacking the details and gaining access to your banking information. Additionally, card payments have security issues. When entering your card details online there is software that hackers use and key logging which tracks what the customer is typing, allowing them to gain personal information and use it for fraud.
Costs are another factor to consider. Businesses who employ electronic cheques spend less money in processing fees which lets the business put more money on other important operations. Digital payment also lowers costs for businesses. The more payments that are made electronically, the less paper and postage costs there are for the business. Nevertheless, there are costs involved with using card payments. A service from a payment service provider will be used by businesses to process transactions on your behalf, this will cost them money.
Convenience is an important factor to ensure payment is easy and they will return to the business. Card payments are time efficient because they are processed electronically therefore eliminating the need to make physical bank deposits. In addition, it increases service levels. Card payments are quicker and more convenient. The business could also offer additional services such as automatic currency conversion to your customers. Electronic payment is very convenient for the consumer. The customer will only need to enter a few details in order to buy products. One benefit is that it allows instant payment. With electronic checks, customers can receive instant acknowledgement of their payments. It also increases efficiency, lower costs and environmental benefits. Processing payments online removes the need for stamps and envelopes, which saves time, money and reduces the amount of paper used which benefits the environment. Yet, the customer needs to register to the institution in order to be authorised to perform money transactions with them. The customer will need to have a username and password and will also need to keep the account up to date which can be irritating and boring for the customer.
Overall, there are many benefits and drawbacks to each online payment system. In order to have an online business it’s important to have payment systems in order for customers to pay for the items. I have highlighted all the positives and negatives of the different types of payment systems. One of the main factors in payment is security which is why I recommend using digital payment services like PayPal. It is secure, fast and easy to make payments for items and although having to make an account which is long and boring, once it’s made you do not have to do anything other than put a username and password in when you pay for items. However, I do also recommend to have other payment methods like the use of cards to give a variety of choice to customers to ensure a good customer service so they return back.