5 online payment systems for ecommerce

One of the pressure points of any ecommerce, which is unfortunately undervalued by many online shops, are online payment systems. It is necessary to insist that most of the businesses involved on electronic commerce use a virtual terminal point of sale: according to Adigital, 94% of ecommerce would use this method.

1. Cash on delivery payment

This system is based on the payment of both the product and its additional costs on the moment of delivery and to the person in charge of this delivery. These are the main advantages and disadvantages of this system:

  • The most outstanding advantage of cash on delivery payment for online sales is that risks for the shoppers are minimized. Customers can check that the product has arrived safe and sound before paying.
  • On the other hand, as a disadvantage, shoppers must face higher commissions than usual. For the ecommerce itself, this system may also be slightly complicated: online shops are forced to deliver the product before receiving the money, and because of this there is a high risk of fraud.

2. Bank debit order

Bank debit order is the least usual payment method. The customer will introduce its bank account number within the ecommerce so it can effectuate the receipt with the accorded periodicity. The bigger inconvenient is that the bank has the power to include commissions for each of these receipts.

3. Bank transfer

The ecommerce will facilitate the customer its bank account number, who will then carry out a transfer in order to effectuate the purchase. Advantages and disadvantages of bank transfers are as follow:

  • It is a slow payment method when compared to the speed of the digital environment. It requires that the transfer to the ecommerce is done in the first place before sending the purchased product, something that will not be done until the transfer is effectuated.
  • The bank can charge commissions for each of these transfers.


4. Paypal

Nowadays, some of the main worries of those who shop online are related to security issues, as the theft of personal or financial information. Paypal was first created as an exclusive payment method for E-Bay, but has established itself now as one of the safest ways to make online transactions.

Paypal is easy to install in any ecommerce, and this is its main advantage. The implementation of other payment platform on a website can be troublesome and pretty expensive. Because of this, small businesses can tend to go for Paypal, since it offers a complete payment system.

5. Credit card via virtual terminal point of sale

Credit cards are the most extended electronic payment method in Spain. We can distinguish to types of payments within this methods: the traditional one, carried out via credit or debit card; and the one done thanks to a 3D Secure terminal point of sale, in which the payment is done through a direct telematic connection with the bank. This payment method also has some advantages and disadvantages:

  • For shoppers, this is the most convenient payment method, since there are no extra expenses.
  • On the other hand, an ecommerce may be forced to pay commissions to the bank that will supply this service, a commission that can go from a 0.5% to 4.5%.

Even if you are sure what payment method is de most convenient for your business, always keep in mind that it is always best for the customer to choose. Therefore, the more payment methods you include on your ecommerce, the more possibilities for the user to finally convert.


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