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Types of Payment Methods for E-commerce 2019

It is known that e-commerce has become more widespread and this, of course, requires a method of payment in order to facilitate the way of dealing with customers. Together we will present the most important payment methods for e-commerce sites.

First, we should know that payment methods are of great importance and that they are faster and safer as it makes sense to offer a wide range of payment options to customers – that will reduce wait time, remove trouble for customers, and make your company look more attractive to them.

Using Payment methods has some benefits such as It makes the checkout process fast and easy and it provides encryption to keep your customer’s information secure. So it is important to add more than one way to pay to the site and to facilitate the convenience of customers to deal with your site and facilitate the demand and access to the product that is displayed. 

Let us show you the most common types of payment methods that are expected to have great usage in 2019.

Types of Payment Methods

Credit Card

The most popular form of payment for e-commerce transactions. It enables the cardholder to borrow funds. The funds may be used as payment for goods and services. Issuance of credit cards has the condition that the cardholder will pay back the original, borrowed amount plus any additional agreed-upon charges.

Advantages:

  • Purchase Power and Ease of Purchase.
  • Protection of Purchases.
  • Building a Credit Line.
  • Emergencies.  Credit cards can also be useful in times of emergency.
  • Credit Card Benefits. such as discounts from particular stores or companies, bonuses.

Disadvantages:

  • Blowing Your Budget.
  • High-Interest Rates and Increased Debt.
  • Credit Card Fraud.

Mobile Payments

One of the Payment Methods for E-commerce. It refers to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods.

Advantages:

  • Customer Convenience.
  • Reduces Expenses.
  • Improves Cash Flow.
  • Cross-Platform Solutions
  • Integrates Loyalty Programs.
  • Access to Actionable Data.

Disadvantages:

  • Watch Security.
  • Outdated Technology and Infrastructure.
  • Cross-Platform Solutions.
  • User Adoption is Slow.
  • Difficult to Read Terms and Conditions.

Bank Transfers

To receive money by wire, you’ll need to provide your bank account information to the person or business sending money. But if you use your credit card to fund a wire transfer, you’ll pay cash advance fees, a higher interest rate, and fees for the transfer itself. it is considered one of the payment methods for e-commerce.

Advantages:

  • Transactions are safe and secure.
  • There is no possibility of payment reversals.
  • Transactions are not subject to chargebacks.
  • Payments are fully electronic.
  • This payment method is customer-friendly.
  • This payment method is increasingly popular with customers worldwide.

Disadvantages:

  • The order is not always a completed payment.
  • There are potential delays in the payment completion process.
  • There is the potential for payments that are not completed by the customer because the customer must contact the bank to complete the payment.

E-wallets

an electronic device or online service that allows an individual to make electronic transactions. This can include purchasing items online with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet.

Advantages:

  • It offers more convenience for many consumers.
  • It provides access to other types of cards.
  • It offers more security.
  • It can be used at most retailers and online stores.
  •  It requires users to authorize every transaction.
  •  It may offer access to new rewards.
  • It could help you with your budget.

Disadvantages:

  • It is not fully available worldwide.
  • It still requires you to carry something.
  •  It requires your device to have a charge.
  •  It doesn’t eliminate your security risks.
  • It may charge you more to process payments.
  • It could encourage reckless spending.

Prepaid Cards

They are associated with major card networks Visa, MasterCard, American Express and Discover. they can be used anywhere debit cards can: to buy groceries, gas up your car, even pay bills online.

Advantages:

  • Widespread use.
  • Best cards for bad credit.
  • Reloading is simple.
  • An easier way to manage your money.
  • High level of protection.

Disadvantages:

  • High Fees.
  • Little Protection.

Direct Deposit

It is a deposit of money by a payer directly into a payee’s bank account. Direct deposits are most commonly made by businesses in the payment of salaries and wages.

Advantages:

  • Convenient.
  • It Saves Sellers Money.
  • Sellers Are Paid On Time.

Disadvantages:

  • Fees.
  • Time sensitivity.

Cash

It is money in the physical form of currency, such as banknotes and coins. In bookkeeping and finance, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately.

Advantages:

  • You get your payment immediately. 
  • There are no additional fees.

Disadvantages:

  • Not many people carry cash anymore. 
  • Cash is easy to counterfeit.
  • Extra vigilant bookkeeping is required.