The emergence of the internet as a retail hub lets people buy things from around the globe that they would have trouble finding in their area. But there’s a catch: If you want to make the world your virtual shopping center, you’ll have to pay for what you buy with something besides cash. To help you decide which option best fits the needs of your business, let’s take a look at four of consumers’ most preferred eCommerce payment options.
1. Credit Card
Credit cards are the most used type of online payment, both because a plentitude of consumers have at least one credit card, and because it’s typically easier to spend freely compared to using money in your wallet. According to Consumerist, “Most of us carry less than $50 in our wallet.”
Credit cards largely eliminate the need to carry cash, which makes many feel more financially secure. On the down side, it’s easy to spend more than you can afford to repay next month — and then the interest rate starts killing you. Investopedia lists poor / excess use of credit as the third most common reason why people declare bankruptcy. So, spend wisely.
2. Electronic Check
Paper checks could eventually become a part of our financial past, but people may still have checking accounts whose information they use to make online payments. Currently, there’s the option of entering information from a paper check into a web-based payment gateway, allowing you to keep the original document and pay with a virtual check.
On the upside, electronic checks as eCommerce payment options can it easier for consumers to stay within spending limits than credit cards. On the downside, the checks typically take longer to process than credit cards, which makes it easier to inadvertently pay with a bad check.
3. Gift Cards
There are two types of gift cards: ones that are store-specific and must be used in a certain store, and cards that
credit card companies offer that can be used almost anywhere. Most people prefer the second type of card because it expands purchase options.
If there’s a downside to gift cards for consumers, it’s that people often exhaust the cards’ funds, and spend quite a bit of their own money, too — money they might not have spent without having the card.
Choosing a Merchant Service Provider
Whether you’re a business that sells in-store, online, or both, the more eCommerce payment options you accept, the more revenue you stand to earn. However, in order to receive the types of payments above, you need a merchant service provider (MSP) to facilitate them. At Allied Wallet, we can set you up to receive these eCommerce payment options, and more.
To inquire about our services, or to schedule a free consultation, call us in the U.S. at (888) 255-1137, call us in the U.K. at +44 203 318 8334, or use the contact form on our website. We look forward to helping you expand your eCommerce payment options!