E-commerce transactions can be handled in various ways, including credit cards, debit cards, electronic checks, gift cards, and deferred payment plans. Security features have improved, and some sites offer gift cards, discount codes, and other payment options.
Ecommerce transactions can be handled in several ways. Some options are identical to those used by regular retail stores and others are unique to online purchases. How the online retailer chooses to handle transactions is entirely up to them, although customer needs and preferences normally play a large part in the transaction options offered. Popular ecommerce transaction options include credit cards, debit cards, electronic checks, gift cards, online payment services, and deferred payment plans. Some online companies still accept personal checks and cashier’s checks, but these options are dwindling as they cost the retailer time and money to process and have a higher chance of bankruptcy than other payment options.
The lack of a real person involved in e-commerce transactions makes many people worried about this form of commerce. In the early days of e-commerce, horror stories abounded of stolen credit card numbers, identity theft, and outright theft by unscrupulous and often outright fraudulent online retailers. Because online sales were so new, security options were limited and blind trust was often the only option offered to consumers willing to buy from a website.
Today’s online business community offers e-commerce transactions with a myriad of built-in security features. Bank card numbers are encrypted to prevent theft and personal information is stored securely through similar techniques. A significant number of companies provide third-party security to retail websites and reimburse retailers and consumers in the event of systems failure.
In addition to accepting major credit and debit cards, many Internet commerce sites offer other transaction options for their customers. Electronic checks are popular with some e-commerce sites, although they cost the merchant additional processing fees on top of the fees they pay to process credit and debit card sales. To pay by electronic check, the seller generates a physical check using the bank information provided by the buyer, and the check is deposited into the seller’s bank account like a regular cashier’s check.
Late payments are another option favored by some consumers. This option allows the buyer to receive a service or product before paying for it by providing the seller with bank account information or a credit or debit card account number to be billed on a later date or dates, if the terms call for multiple payments . This method usually involves a service fee payable to the seller at the initiation of the transaction.
Some e-commerce sites sell gift cards or gift certificates or offer discount coupon codes to consumers. These online retailers accept these payment methods for e-commerce transactions. These payment methods are processed much like payments made by credit or debit card.
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