Posts Tagged ‘paydotcom’
Online Payment Systems Pave the Way
Thursday, October 18th, 2007
Running a business in the 21st century has its advantages. The Internet has made it possible to find buyers for your products from around the world, which significantly increases your profit potential. However, there are a few rough spots when it comes to working with foreign countries. One issue is the difference in currency. Another is the language and culture barrier that exists. Online translating programs greatly assist in interpreting the needs of foreign clients; however, dealing with foreign currencies can be intimidating.
Online Payments Pave the Way
Choosing an online payment system that can handle different currencies can significantly ease the stress of running an e-commerce business. Once you have an account set up, it isn’t hard to add a shopping cart. However, choosing a payment system that meets your individual needs is not straightforward. Not all systems work with all countries. And with new systems and services popping up every day, keeping up with new offerings can make the task of choosing one system that much harder.
When deciding the kind of online payment system to choose, you will want to cater it to fit your main market group while still leaving options to add extra services. If you plan to offer your products internationally, choose a system that works in many different currencies. Remember: the goal of an online payment option is convenience, but you also want to offer your visitors a secure way to pay, and with identity theft running rampant today, the less information customers have to give, the more comfortable they will be buying from your site.
Selling the Online Payment System
If you have an e-commerce site, you already know all the research that went into choosing how best to sell your products online. But it shouldn’t take that long to “sell” yourself on the idea of setting up an online payment system. For one thing, an online system means instantaneous payment. This is far more convenient for you than waiting on a check to come through the mail or paying extra for a customer to pay by credit card. You won’t have to deal with overdraft issues either, since most payment systems work off a stored value card or a debit card that has been linked to a bank account.
While online payment systems offer convenience, they do have some minor disadvantages. You won’t automatically have written copies of your receipts or transaction. These will have to be printed off for your records so they can be included in your tax papers.
Let’s look at the major online payment systems to see the unique benefits of each. In the end, what system you choose will depend on personal preference and your overall goals. Please note the absence of some very popular payment “systems” including PayDotCom, Wallet365.com , Stormpay and ClickBank. I don’t include them because they can only be used in one country, are connected to Adsense sales or simply aren’t taking new members.
* AlertPay.com : This electronic wallet system is based in Canada. Like PayPal, consumers can send payment through email. With three account levels, both individuals and companies can take advantage of their services. Registration is free, and customers may send money for no charge (credit cards require a small fee). You pay 1-2% to receive money. You may add funds to your account through your bank account, or through money order. This company deals in multiple currencies, and will accept and convert payments to your chosen currency. In Fall 2007 they plan to offer a debit card.
* E-gold : This unique online payment system involves keeping money in an account that is backed by gold and other valuable metals. It is a global currency, meaning that it does not rely on the currency exchange rates to determine worth. Instead, payment is measured in gold weight. This system doesn’t cost anything to start, but there is a monthly maintenance fee and a transaction fee to receive money. If there is one inconvenience to E-gold, it is that you have to purchase the gold through a separate exchange service. E-gold is slowly expanding to include more and more venues, but it is still not available everywhere.
* Worldpay.com : A good choice if you are selling products online, especially if you have worldwide clients. With this system you can accept payment over the phone. Worldpay accepts payment from almost sixty countries. There are a number of small fees attached to this system, including a set-up fee, a monthly charge, an annual fee and a transaction fee that varies with the amount of the transaction.
* MoneyBooker.com : One of the largest and most convenient payment systems in the world. It was created specifically to allow merchants to accept credit and debit cards online as well as bank transfers. There are no setup fees to get started .Moneybooker boasts a capped transaction fee, which means you never pay more than .80 Euros per transaction. You pay to send money, not receive it.
* PayPal : This is the most popular online payment system. It also offers the most benefits. It is free to send and receive money unless you are paid using a credit card, in which case a small percentage of the payment is withdrawn as a transaction fee. PayPal offers its own debit card in addition to the new “virtual” credit card that changes numbers each time you pay something online. The only downside to PayPal is that you have to have a credit card to apply for the debit card, and to become a verified member you have to attach your PayPal account to backup funding of some sort (usually a bank account).
Tags: adsense, alertpay.com, clickbank, e-gold, jennifer ratliff, moneybooker.com, online payment systems, paydotcom, paypal, stormpay, wallet365.com, worldpay.com
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