Ecommerce Payment Solutions

Written by Kevin Tavolaro
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Ecommerce payment solutions provide the online merchant with the tools necessary to begin accepting payments over the Internet. There are a variety of ecommerce payment solutions available, each with its own advantages and drawbacks. An online business owned can determine which solution best suits his online business by examining these pros and cons.

Some of the requirements of ecommerce payment solutions are universal. The business needs to able to conduct secure transactions, provide reliable service, and insure that customers are protected from online fraud. However, other merchants needs may vary with the business size, customer base, and products that the business offers. These include factors such as the desired turnaround time between purchase and delivery, the possibility of customers making additional impulse purchases, and the socio-economic makeup of the customers themselves.

Comparing Ecommerce Payment Solutions

A business can open a merchant account through their bank, which is then configured to regulate all of its Internet financial transactions. Merchant accounts are favored by larger businesses with a high volume of sales, as they assist to automate the use of ecommerce payment solutions. With a merchant account, a business is able to accept credit card payments directly from their website. This appeals to many customers, as credit cards are a familiar means of payment. In addition, this method also increases the chances of customers making impulse purchases, as the payment process itself is so fast and familiar.

There are also a number of non-credit/debit card ecommerce payment solutions available. Digital cash solutions allow a web business to accept payments from customers via a third party broker. Customers set up an account with the digital cash broker and their purchases are billed directly to their account. Ecommerce payment solutions such as this are attractive to customers who would rather not transmit any of their credit card data online.

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