Here’s How Electronic Payments Work.
More and more consumers are opting for electronic payments, thanks to the convenience of making online payments compared to sending a check by mail, handling paper money, or even swiping a card.
Here is a look into how electronic payment systems work:
Working of e-Payment
As its name suggests, an electronic payment is a non-cash payment. It makes it quick and easy for consumers to pay you. Some of the most common methods of e-payments are debit and credit cards and ACH (Automated Clearing House) network funds transfers, comprising electronic checks and direct debit or deposit.
Ideally the process requires you to enter account details, including card number and billing address, which are stored in a database on a server of the online retailer’s merchant gateway provider. Next time you come for shopping and log in to their online store, you will not need to fill in all your credit card details again, but will need your card’s CVV code. The CVV code is not stored to enhance the security of your transactions. The server remembers your details and will send you a notification to confirm the order and authenticate the transaction. Here are the Best Ways to Accept Payments From Your Customers.
One of the biggest benefits of e-payments is that it helps lower overall costs and also makes it quicker to transact business. The more the e-payments, the less the paper and postage expenses! With more and more consumers opting for e-payments, offering this facility can help you get an edge over the competition and improve customer retention. With their account information already stored with the online retailer’s gateway provider, customers are more likely to return for their next purchase (of course, if they get the best deal).
However, some consumers do have reservations about electronic payments, primarily due to privacy concerns and risk of identity theft. But this does not mean there are no safeguards available to protect private information electronically. Installing an award-winning anti-virus software, firewall and malware protection are your first line of defense against identity theft or phishing attacks.
It is critically important NOT to share any credit card or bank account details over the phone AND ONLY over a secure server connection online. The padlock or key icon in the browser’s address bar is a sign of a secure connection. It indicates that whatever data you send from your browser to the online retailer’s payment system is encrypted and cannot be hacked to steal your data and used fraudulently. Besides, any URL with “https” is deemed secure compared to those with only “http.”
Although it is highly recommended and practices by all eCommerce business to secure their website transactions, it is always best practice to check that you are using a secured website when shopping online.
Setting Up e-Payment
For an all-in-one online payment solution, you must shop around for the best rates in order to accept credit cards along with other forms of e-payments. The payment service provider is responsible for authorizing and processing payments made by a customer on your site, transferring funds to your bank account.
For an in-house payment solution, the first step is to set up a secure server with SSL technology for data encryption. SSL technology is designed to make it difficult for intruders to decode or even intercept sensitive information.
Electronic Payment Association
The body in charge of governing the ACH network is the National Automated Clearing House Association (NACHA). The not-for-profit association has laid down standardized business practices and rules for electronic payments and e-check transactions. The Electronic Payments Association, as the NACHA is known, ensures e-payments are safe, reliable, and secure.
Start Using Smart Electronic Payment Options for your Business
When selling online, you will need a way to accept online payments from your customers . For that you will need to know What Payment Options Do Consumers Want for eCommerce. Let Access Payment Systems help with our electronic payment solutions and merchant gateway. We provide a Virtual Terminal to make it easy for you to manage your merchant account. Let us help you with our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save!
Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!