Posts Tagged ‘merchant account’
Online Payments: Not Just for Credit Cards Anymore
Wednesday, November 21st, 2007
If your business has a website that allows online orders, there’s good chance that you accept credit card payments for any purchases made by your customers. You may even accept PayPal, especially with the rise in that particular method’s popularity, thanks to the likes of eBay.
However, there are alternatives to these more common options. Although there’s nothing wrong with either PayPal or credit card payments, you could save money, as well as make things simpler for your customers, by looking into using another payment method. For instance, PayPal payments require the buyer to have a PayPal account, and not everyone has one, or wants one. So what options are there?
Merchant Account
This is probably the most viable alternative to credit card or PayPal payments, and is also the most popular. Simply put, a merchant account allows you to have a direct link to your customers - for example, you can even take payments face-to-face or over the telephone. Better still, if your business is mobile in any way, you can even collect payments from your customers when dropping off their purchase at their own doorstep.
A merchant account can also safeguard your business when it comes to online purchase, thanks to the security measures they have in place. They can verify addresses and that the person making the purchase is who they say they are; and they can take care of any legal costs arising from disputed purchases or invoices. Although initially costly to set up ($300 is an average cost, with monthly charges on top), the long-term benefits make it worthwhile.
Alternatives to PayPal
If you don’t wish to use a merchant account, yet you’re not too keen on PayPal either, there are some other alternatives that you can use:
* Google Checkout. This accepts either credit cards or debit cards, and works similar to a merchant account in that they may carry out a credit check on the person signing up, to ensure less of a risk when it comes to purchases and payments. Once a purchase is made, payment is taken via Google Checkout. The benefit of Google Checkout is that you can have one single account, and there are no extra fees to use it. Also, if you advertise on Google, you can have the extra benefit of a special Google Checkout button on your ad, which makes it stand out to potential customers. http://checkout.google.com
* Bill Me Later. Much like a Buy Now-Pay Later option at any downtown retailer, this allows your customers to make a purchase, which they then receive an invoice for, to be paid within an agreed timescale. For your customers, it offers a convenient way to buy your products, and for businesses it still offers secure anti-fraud measures. http://www.billmelater.com
* PayByCash. This is an option that’s growing in popularity, especially for businesses. It allows anyone to buy a product or service online, since there is no need for a credit card - the customer simply clicks on the PayByCash link on your website, and sends payment later. You benefit as well, due to there bring no merchant account fees for the majority of business members. http://www.paybycash.com
It may be that using PayPal or credit cards for your current online customer transactions works well for you. However, by offering more than one way to pay, you’ll be opening up a far bigger customer base than you currently have, and that has to be worth your consideration.
Tags: billmelater.com, checkout.google.com, credit cards, danny brown, E-Commerce and E-Business, merchant account, online payments, paybycash.com, paypal, paypal alternatives
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