The Most Common Online Payment Systems | Free Antivirus Software

Offers and services are continuously developing on the Internet. This trend also affects the most common online payment methods in e-commerce. New processes are continually being developed and brought to market, and aim to be more and more convenient for users. But can these new methods compete with traditional means? What advantages does online payment offer compare to purchase by invoice, direct debit or cash on delivery? And what new risks do these means of payment represent? To offer the best possible service to customers, merchants must keep an overview of the various possibilities and offer a choice of secure online payment methods.

Online payment methods 

French consumers react in a particularly sensitive way to the themes of data protection and transaction security. Media reports on phishing ( Phishing ) and data theft led to a rather legitimate scepticism about Internet transactions. For an Internet user to go from the status of a simple prospect to that of a customer of your online store, a merchant must anticipate the needs of his visitors in terms of payment options on the Web. In this regard, the perfect internet money transfer solution does not yet exist. Each payment system offers both advantages and disadvantages. This is why secure online payment systems are the result of a compromise between the buyer's security and the seller's security.

Purchase by invoice

Buying on the account is particularly appreciated by buyers all over the world, and particularly in Germany where this means is more developed than in France. Its success can be explained simply: with this method of payment, all the risks associated with the transaction are clearly assumed by the seller on the Internet. The latter sends the ordered goods including an invoice that the customer will have to pay subsequently. The merchant receives the money only after the good reception of the good by the customer. The merchant thus orders the transfer with a corresponding receipt or an online banking service. If the transfer is missing, the investment of the operator of the online store becomes more important. Despite this great disadvantage,

Many customers prefer this type of transaction over all other online payment methods. There are external service providers like Klarna or BillPay that help reduce the risk of default for merchants by checking customers' creditworthiness. The latter takes care of the payment rights of the merchants within the framework of factoring and the process of payment by the customer. Alternatively, many online stores allow purchase on account, but exclusively for their regular customers. With the aim of once again avoiding defaults and other scams, purchasing on the account does not incur additional transaction costs.

Advance payment

Prepayment is the exact opposite of invoice payment. If a customer decides on this method of payment, the goods are shipped only when payment is made by the customer. In this case, it is the client who assumes the risk of the transaction. If the latter has placed an order on an unreliable and serious online store, he may not receive the expected merchandise despite payment. The termination of the order may prove difficult in the event of defective merchandise or which does not correspond to the customer's expectations. In order to encourage customers to opt for this payment method, merchants are setting up special discounts for advance payments.

The fact that the payment is made by a traditional transaction channel (bank transfer) represents an advantage and a gain of confidence for the customer. In this way, sending sensitive bank data would not involve any risk. Just like a traditional transfer, prepayment does not incur transaction fees. Fewer Internet users are using prepayments, so merchants should be careful about offering other reliable online payment methods. In general, this payment method is only recommended if the merchant is trustworthy.

Specimens

Direct debit also belongs to traditional online payment methods. This medium is ideal for purchase from an online store because of the planning security and low transaction costs. An online store direct debit is quite practical for a customer: the invoice amount is debited directly from their account, generally as soon as the goods are shipped following the direct debit authorization. In the event of an unjustified charge, buyers can file an opposition with their bank and obtain a refund of the amount committed. This possibility is solid protection against web crooks and unreliable traders.

However, a direct debit involves major risks associated with the transmission of bank data necessary for the transaction. These are the account number, your bank code as well as the name of the financial institution that manages the customer account. Direct debit, therefore, carries the risk of phishing and data theft. As such, online store managers should ensure that sensitive customer data is always exchanged via encrypted and therefore secure transmission. Secure Socket Layer (SSL) encryption is a reliable protection against these threats. To avoid defaults on unknown accounts, a credit check can be performed by external service providers like Klarna or BillPay, mentioned above.

Against reimbursement

A compromise between security for the seller and security for the buyer is possible thanks to cash on delivery. This payment method is also one of the traditional payment methods offered by online stores. Here, the customer pays his invoice at the time of delivery. Usually, only cash is accepted in this situation. The transaction is carried out off the web, which is an advantage for the customer. Cash on delivery is, therefore, one of the safest options.to order goods on the Internet. In France, such a service is offered by various companies specializing in logistics such as La Poste, DHL and Chronopost. An additional tax must be paid to these external service providers in addition to the invoice amount. There remains a risk for the trader, that of the refusal of the goods by the customer. In this case, the costs are his responsibility. As the transaction takes place at the customer's door, the customer cannot always verify the correct functioning or condition of the goods in good conditions. Once the merchandise has been paid for, a refund due to non-functioning or defect is more difficult than when purchasing on account.

Credit card

Perhaps the most convenient option for buying goods on the Internet is by credit card. In general, a customer must enter their banking information (name and first name, type of credit card, card number, expiration date and visual cryptogram) in a payment form integrated into the online store during the ordering process. The merchant collects the amount invoiced by the corresponding banking establishment and ships the goods. If this is received in an incomplete or defective way, the buyer can obtain a refund on the credit card used during the purchase. In the event of a total absence of goods, the customer is of course entitled to a refund.

This payment method is therefore widely used by online stores due to the simplicity of the payment process. As this type of transaction presupposes the transmission of sensitive banking data over the Internet, the same risks and the same precautions as for the payment by direct debit are valid. Thus, transmissions of bank details must be carried out on sites using a data encryption protocol (SSL). Internet users making credit card purchases on the web are indeed in the sights of crooks and their phishing attempts. This use of the credit card poses to online store managers the challenge of securely storing bank details. Media reports show that hackers have in the past always been able to gain access to sensitive databases in large online stores. In addition, employees of large stores have already transmitted sensitive data to third parties in some cases.

Issuers of external payment instruments

More and more customers trust external payment service providers when shopping in online stores. These external services not only have advantages for customers but also for traders. Managers of web stores benefit from outsourcing payment processes because credit management is left to external service providers. In addition, these modern systems ensure a small delay between the payment issued by the customer and the receipt of payment at the merchant. The goods can therefore be delivered much faster to the customer. This acceleration of exchanges is particularly evident with digital goods such as music files or online newspapers which can be made available to customers in just a few seconds against payment. These external payment services are delighted with the rise of these micropayments. On a medium such as PayPal for example, you must have a special customer account. With a payment service provider such as ICEPAY, the connection between the online store and the online bank is made directly through the respective bank accounts. Here are the advantages and disadvantages: With a payment service provider such as ICEPAY, the connection between the online store and the online bank is made directly through the respective bank accounts. Here are the advantages and disadvantages: With a payment service provider such as ICEPAY, the connection between the online store and the online bank is made directly through the respective bank accounts. Here are the advantages and disadvantages:

• Payment services with customer account: with these online payment systems, sensitive banking data is not made available to the merchant. In this way, the risk of a bad experience with an unreliable store is reduced. PayPal, the market leader, offers greater security to its users. It includes the reimbursement of payment if the goods are not received if they present defects or malfunctions. But since customer accounts are protected by usernames and passwords on external payment platforms, the latter have also fallen into the sights of crooks.

• Direct transfers via a third party: with a service such as ICEPAY, a customer filling out an online store order form is directly put in contact with his online bank. From this same bank, the customer will then transfer the amount of the invoice to the merchant. For security, each transfer made must be confirmed by its issuer with a code that it will have received by SMS. However, this type of system raises criticisms regarding the security of the transmission of bank accounts and confirmation codes by SMS to third parties.protegent360 free antivirus software safe and secure your online transactions