Payment solutions are required by organizations, retailers and any firms which require transactions to be carried out between them and their customers. This can either be in the form of an online or offline payment solution, but it depends on the company and which payment methods they choose to offer their clients.
Depending on which industry a company operates in and how clients pay for goods and services, the payment solutions will need to be accessible and suited to your business needs. Many companies now tend to establish online payment solutions in contrast to the traditional offline methods due to the worldwide appeal of them and easy accessibility the internet offers.
In order to determine which payment solutions are best suited to your business, companies need to understand the different options available to them.
Online Payment Solutions
An online payment solution is a method which requires the internet as a platform to carry out payment processing. There are various methods of online payment solutions available and most companies strive to offer a variety so that they appeal to a larger audience:
Credit Cards: a type of money card which enables the cardholder to spend a specific amount which is repayable on competitive interest rate. They are available worldwide and offered to individuals as well as businesses. The main advantage of credit cards is that they allow the holder to have flexibility in payment of their purchases as well as the freedom to pay it back over time, with interest rates applying.
Debit Cards: is a type of card which the bank issues to a holder for them to access their account. A debit card allows holders to access cash at any time through an ATM machine as well as use it to make payments at POS terminals or online. The main advantage of debit cards is that they provide high security to their holder as well as accessibility to funds at any time.
E-Checks: is an electronic version of the traditional paper cheques, used to make online payments. In this alternative method of payment transaction, you can pay for good/services without having a credit card. The money is drawn from your account and transferred into the sellers account. Submitting and accepting e-check payments online is referred to as e-check processing.
Mobile Payments: is a process of making payments through a mobile device. Most banks offer an SMS service when making a mobile payment which authorizes it in order to make this method more secure. This payment solution is particularly beneficial to owners of devices such as blackberries and iPhones.
Offline Payment Solutions
An offline payment solution is the exact opposite of an online solution as it does not require the use of the internet to process transactions. Offline payment solutions are a more traditional method of processing transactions, for this reason it is trusted more by some retailers. There are many different methods of processing payments offline and they include;
Bank Wire: is a process of payment which transfers money from one bank account to another. This transaction can be made through a bank account or a cash office. Being one of the fastest methods to transfer money, bank wires have proven to be a very popular and reliable offline payment solution.
Cash Payment: the most common and traditional form of payment. Cash payments allow the transaction between an individual and company to be fast and efficient. Cash payments are often risky in the case that a large amount of money is being dealt with, while retailers and companies who accept cash payments will need monitoring and money handling procedures and precautions in place.
Cheque Payment: is a method which involves a written piece of paper that permits the issuing of funds from your bank account to be transferred to the said individual/company. Cheque payments are still a widely used form of offline payment, and are beneficial as it avoids the need to be carrying large sums of cash around.
Postal Payment: is a type of payment that is available for companies of any size. Often used domestically for accepting offline payments from customers across the country; for example: ordering via a catalogue and delivering goods direct to a customer’s specified location. They are a popular and safe method of processing transactions as they can be tracked and can only be cashed by the intended receiver.
Bank Guarantees: is a contract between an individual and bank assuring that in the event that the investor fails to pay a specific amount, the bank will settle their debt. Bank guarantees are not a form of payment processing however they may be required when making substantial payments. In order to qualify to obtain a bank guarantee, the company may be required to present documents detailing the investment they require it for.