The success of a business often depends on how easy the shopping mechanism is for the end user. Whether you are selling goods online, or in a conventional store, at the end of it all the payment system has to be hassle-free and easy to use, otherwise you may end up losing customers in no time.
Particularly if you are into e-Commerce, there are certain things that you needn’t (or perhaps can’t) run through your staff support desk — electronic payments top that list.
Whether you’re selling your products in online marketplaces or on your own website, you need a mechanism to receive funds. This is where a good payment system comes in handy.
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Square lets you accept payments directly through your mobile phone, thereby allowing mobile devices and smartphones to become point of sale checkout systems.
There are no monthly fees, and you are charged 2.75% per transaction for major credit cards.
PayPal is one of the most popular online payment services. It is well known as a reliable, budget friendly and user friendly method to transfer, send and receive funds from different parts of the world. With over 230 clients, PayPal allows you to market your products and services online and receive the funds directly into your PayPal account, which can later be withdrawn to one’s bank account.
There is no monthly or setup fees in general, and the fee per transaction depends on the country your client is based in. In general, the fee is 2.9% plus $0.30 per transaction, though it can change over time and on the basis of the country you are based in. For a complete overview of the pricing structure, visit this page.
Google Checkout lets you pay for goods and services using an account linked to your Google profile. While Checkout is not the most popular service out there, it has a definite advantage because numerous users rely on Google for their internet needs (if you have GMail, you have a Google account, and you can use Checkout right now, if you so desire).
When it comes to pricing, the transaction fee decreases or increases on the basis of monthly sales volume. Also, Checkout is still not available in certain parts of the world.
Unlike all other payment gateways, Samurai by FeeFighters is geared more towards developers, to the extent that its developer-friendly features stand apart from the rest. In order to setup Samurai as your payment mechanism, you simply need to copy-paste 19 lines of code.
If you decide to use only the payment gateway, you’ll have to shell out $10 per month, along with a fee of $0.10 per transaction. Alternatively, you can go for the gateway along with the merchant account, which will cost you $25 per month and $0.30 per transaction.
Unlike many others, Dwolla is a rather simple and no-frills payment system – sending any amount of money to any corner of the world is totally free.
If you wish to receive payments under $10, you will not be charged any transaction fee whatsoever. For any transaction above $10, you are charged a transaction fee of $0.25 Sounds pretty affordable, doesn’t it? In fact, Dwolla is one of the most budget friendly payment options out there!
Unlike a payment gateway, a ‘payment processor’ is basically an anti-fraud mechanism that aims to protect both the buyer and seller. It is especially helpful with card transactions.
There are certain key features that are almost mandatory in any payment solution:
- Ease of Use: a payment mechanism should be easy to use. In other words, it is not a good solution if it requires a degree in rocket science in order to transfer funds to and from your bank account.
- Reliability: you will surely not want your payment system to grab your money then disappear overnight. Along similar lines, it will not be helpful if your customers attempt to pay you, only to find out that the payment mechanism is experiencing “technical issues” and will be “back shortly”.
- Affordability: the service fee and/or commission charged by the payment system provider should not be too high.
It must also be noted, that more often than not, your country’s monetary policy will have an effect on the type of service you get from your payment service provider. You may be asked to furnish a tax payer’s proof of identity, a statement from your income tax department, and so on. Plus, the amount of money you can transfer to and from your online account also depends on how open (or closed) your country’s monetary norms are.
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