© Copyright Our Wall
Online payment process is just a convenient alternative to making payments by cash or check. Online payment services are very different since they do not require businesses to own accounts using them to produce a payment or transact business. The payment process through online services is much faster and secure than traditional modes of payment. They use a secure electronic fund transfer system to be in transactions.
The services are particularly popular among online auction sites and online stores. It has been around long enough to be accepted as a safe and trusted way of spending money on online purchases spay india. While there are lots of advantages of having an online service to conduct business, they do involve some loopholes and drawbacks that are sometimes exploited by unscrupulous elements.
The services use a quite simple process to transfer funds. Buyers and sellers are expected to supply the mandatory information such as their name, email, checking account information and credit card details. Checking account information is generally asked for, confirming the identification of the user. To pay the vendor, the customer has to enter the valid email of the recipient and the amount that will be sent. In case the recipient is not just a registered person in the payment service provider, they get a contact that directs them to the method of claiming the transferred funds. They're either paid by a check or the funds are transferred with their bank account.
Payment services charge their client a tiny percentage of the transacted amount as fees or service charges to look after their expenses and overhead. These fees are less compared to what they would pay for using a charge card merchant account. Another advantage is why these services can be used to make small payments over frequent periods such as customer discounts, commissions and rewarding affiliates.
There are some drawbacks of the system. Many online service providers impose limits on how many transactions as you are able to carry out on daily/weekly basis. Businesses that exceed the limit imposed are expected to pay premium charges or additional fees to keep doing transactions. In the future, this will lower the earnings earned by the business.
Online payment services are not governed by the guidelines and regulations that are binding on federal institutions and banks. Consequently, they are not protected by federal deposit insurance. Such services offer their customers less protection against frauds as compared to credit card companies. For example, the utmost protection that online payment service provider PayPal offers for just about any fraud committed or for non-deliverance of goods is only $200.
Online payment services are quick to freeze accounts of clients should they suspect fraud or some sort of fraudulent activity in transaction. Resolving such issues may force the users right into a legal tangle resulting in huge losses, not merely because of revenues and goods lost, but additionally because of additional costs incurred in fighting the case legally.
Most online payment services are issued a website privacy seal right, which indicates they follow certain privacy and security guidelines to safeguard consumers' interests.
The Wall