Online Payment methods. Pros and Cons for the main online payment methods.

Sunday, 06 June 2010 22:19

Online Payment Methods. Pros and Cons.

5 September 2010 - 5/09/2010

When it comes to do online business one thing is very important how you are going to receive payments or how you will charge your customers for your products or services? Online payment methods are very important in this regard. Today most of the people want to use Online payment methods while purchasing on the internet or doing business online. Perhaps this is the safest and easiest way to pay online. You don’t need to give your credit card information to any one because now you can pay from your online account.

Online payment methods provide with a virtual online account in which you can deposit funds, receive funds and also if you want you can transfer funds easily. There are no chances that your money will be lost because all these online payment methods are completely secured and they operate under online finance security authorities.  In this article we are going to discuss some important aspects about online payment methods.

If you are running an online business then you can choose any payment method which is available on the internet. Some highly recommended and trusted online payment methods are given below:

Credit Card payment method

Credit Card payments Pros:
- It’s an instant payment method.
- It’s very easy to pay with a credit card, you have just to give some of your  credit card details.
- Most of the credit cards can be used for online payments: Visa, MasterCard, Discover or American Express.

Credit Card payments Cons:
- There’s a high risk level when you provide your credit card information over the  internet. You have to be very careful where you provide such as information on different websites because they can be stolen by a 3rd party.

PayPal online payment method

PayPal Pros:
- PayPal is one of the most secure payment methods.
- PayPal payment is made instant so we can say it’s one of the most fastest online payment methods.
- Paypal fees are very small compared to all the other payment methods.
- You can send and receive money from over 100 countries.
- PayPal is the safest and easiest option for e-bay merchants.
- It takes maximum 4 days to verify your bank account.
- You can withdraw money from your PayPal account directly to your credit card.

PayPal Cons:
- Users are only permitted five withdrawals annually, and payments may take up to a week to arrive.
- PayPal's customer service is deplorable.
- Their chargeback policy favors buyers, which is bad for the serious sellers.
- There’s a lot of phishing actions from 3rd parties.
- If PayPal consider some of your activities as fraudulent your account may get frozen and all of your funds confiscated for up to six months.

MoneyBooker online payment method

MoneyBookers Pros:
- MoneyBookers uses an escrow service to secure the transactions against frauds. The buyer places the funds into an escrow account + 2% as a guarantee. The seller can’t take the money till the transaction is over. Once the buyer have received the product he releases the funds from the escrow account to the seller and get his 2% back.
- MoneyBrookers has a Mass Pay function, which allows payments up to 100 email addresses at a time.
- You can send and receive money in different type of currencies.

MoneyBookers Cons:
- The escrow service has a 1% fee of the transaction, which is paid  by the buyer.
- MoneyBrookers is available only for 38 different countries.
- 1.75% commission for different currencies conversions.
- Money can be transferred only from a business account to a business account or from a personal account to a personal account. You can’t pay from a business account to a personal account or from a personal account to a business account.

5 September 2010 - 5/09/2010

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