Online payment systems for retailers: an overview of the advantages and disadvantages
At the center of e-commerce is the ability to pay comprehensively online. Networks, technical standards and providers allow for a secure and reliable payment process. Payment methods can be divided according to the into prepaid, pay now and pay later payments.
The prepaid procedure implies the deposit of credit on a storage medium. The latter is usually a rechargeable credit card or e-wallet. The credit can be used at any time, without exceeding the deposited amount. Many banks offer prepaid credit cards. Prepaid gift cards also work on the same model.
Similar to cash payments, pay now procedures are used in direct debit or e-wallets payments. When using direct debit, the buyer agrees to have his account debited by the seller. Payment and transaction are made simultaneously, and the ordered goods are paid. Pay now has the advantage that traders get their money immediately after the purchase.
The opposite of pay now is pay later. The best-known pay later payment method is the credit card. The amount of the purchased goods will be credited to the dealer and later invoiced to the customer by monthly statement.
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