Why you Should Be Careful When Paying Online
In today’s society, the majority of people prefer to shop online. This is due to convenience and not having to deal with pesky customers in a brick-and-mortar store. However, one thing that has been plaguing eCommerce for years is how customers pay for their purchases. As an entrepreneur, you need to know the pros and cons of both credit cards and online payments so that you can make an informed decision on which payment method is best for your business.
Another advantage of online payments is that it’s typically much cheaper for the entrepreneur to accept payments this way. For example, BlueSnap and PayPal charge a fee of only around $0.30 per transaction plus a percentage of the total sale (which is lower than most credit card companies). Additionally, there are many different online payment processors available so it’s likely that you’ll find one that meets your needs and is affordable.
However, there are also some drawbacks to using online payments. The main disadvantage is that not as many people use these methods as they do credit cards which could lead to lost sales if you’re not careful. Additionally, some customers may feel uncomfortable giving out their financial information to a third party such as PayPal and would rather use a credit card instead. Finally, if your online payment processor gets hacked (like what happened to Target) then you could lose customers due to their financial information being compromised.
When it comes to credit cards, there are a few pros that come to mind. First and foremost, credit cards offer buyers some level of protection in the event that they do not receive their order or if the product is damaged. Additionally, many credit card companies will offer rewards programs that give customers cash back, points, or other incentives for using their card. Finally, credit cards can be used to build your credit history which can come in handy when you’re looking to borrow money for a larger purchase such as a car or home.
However, there are also some drawbacks to using credit cards for online payments. For one, most people tend to carry high balances on their cards which can lead to expensive interest rates. Secondly, credit cards can be lost or stolen so it’s important to have a mechanism in place that will allow you to quickly stop the payment from going through. Finally, there are also some countries where people cannot use their credit card online because of security reasons – this is especially true if they’re using a public computer.
When it comes to online payments, one major advantage is that for many services (such as PayPal) buyers do not need to enter sensitive information on your website. Instead, once they’ve logged into their account (which takes them back to your site), all they’ll need to do is click “Pay.” This makes buying items much more secure than entering billing and information every time an order needs to be placed.