6 Online Payment Services All Businesses Should Utilize

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E-commerce has different demands when it comes to utilizing payment services depending highly on the type of services and products you are selling online. Sometimes, online merchants get confused because of the huge number of possible payment solutions, offering different terms and policies. 

Here we will provide you with the list of some of the most used, online payment systems, all together with the most important terms from this field. This will give you a hand when choosing the most suitable system that will improve your business functioning. 

The most important terms about payment systems 

Almost all payment systems function according to different principles and they essentially depend on the type of service they provide.

6 Online Payment Services All Businesses Should Utilize

Some of them have an aim to trust the information between the customer and seller, and customer and payment service; other types are reserved for payments and transactions varying only in the charging fee. Here are the definitions of the terms related to the online payment system:

  • Merchant Account is a special kind of bank account enabling customers to receive payments through credit and debit cards. In its essence, it is a contract agreed by merchant providers and card associations, where merchants are obliged to obey the regulations established by the issuing bank. Many payment systems are acting like merchant accounts and payment gateway. 
  • ACH payments or Automated Clearing House are by the definition electronic credit and debit transfers, that allow customers to pay their bills, utilities, mortgage loans, and other sorts of payments from their bank. A great number of payment systems offer ACH payment possibilities to their clients especially when it comes to monthly- and subscription-based transactions. 
  • A payment gateway is a kind of system that securely passes the credit card information between the customer and service issuer, as well as, the service issuer and the payment system. The payment gateway is the mediator between the sponsoring bank and the service issuer.
  • PCI compliance is a process where a merchant/service issuer and payment gateway set their payment environment so that requirements meet the Payment Card Industry Security Standards Council and therefore increase the security of the cardholder and minimize the fraud chances.

In line with these, there is a great number of online payment systems allowing secure and efficient performance and are effective factors in the functioning of online businesses.

1. PayPal 

PayPal was founded in 1998 and is the world's most widely used payment system. To demonstrate this, nearly $936 billion in payments were made in 2020. With over 350 million active PayPal accounts, it is one of the most trusted payment platforms. 

Given that PayPal is used by 28 million business owners and 325 million active account users, this payment platform appears to be the ideal online payments service provider for businesses.

6 Online Payment Services All Businesses

PayPal accounts are made by inputting your personal information and linking the active card of the issuing bank. Payments are made in a similar way by using the existing account with funds available or with a credit card. When business-related, you can receive your payment to PayPal acting like your virtual wallet which you, later on, use to wire your money to the active bank account. 

PayPal is one of the rare online payment service providers that will allow you to send money through using your active account. 

Speaking of charges, PayPal will charge you 30 cents per transaction with 2.9% of additional charges for domestic transactions, but it will not charge your account for monthly setup. 

2. Payoneer 

Payoneer is a payment system founded in 2005 and as such is used for international money wires, digital payments, and providing customers with capital. 

This platform is popular among business owners sending products and providing services worldwide because Payoneer properties receive payments from any corner of the world. Payoneer is a bit different from PayPal since you can use PayPal to send funds to the bank account like a chime account, but you cannot send funds from your PayPal account to the bank account. 

Therefore, it is the best option to send funds from one PayPal account to the other so that you can withdraw money from the bank. In contrast to this, Payoneer is slightly different from PayPal since you can send funds via Payoneer to the bank. 

If you are using your Payoneer account to send funds to other countries, then you should be prepared for the conversion charges. When it comes to charges, Payoneer to bank withdrawal charges is 2% above the mid-market. 

The same principle goes for business purposes. Whenever you are receiving money from abroad, you will have to pay conversion charges, unless the payment is processed in the same currency like USD or EURO. 

Payoneer is located in New York and it supports over 200 countries and over 150 local currencies. To support your idea of using Payoneer for your business purposes, some of the companies using Payoneer as the online payment service providers are Airbnb, Google, Amazon, eBay, Rakuten, Adobe, Upwork, Fiverr, and others. 

3. Google Pay 

This platform is Google’s response to PayPal. Google Pay allows users of their account to pay for the products and services through an account connected to their personal Google account.

The benefit of making Google Pay stand out from the competition is that millions of users use Google apps for other services, and making purchases via Google Pay is a much simpler process. 

6 Online Payment Services All

Speaking of pricing, Google will not charge business owners for accepting Google Pay. On the other hand, if the customer uses a credit card through Google Pay, then the credit card company may charge you a transaction fee. 

4. Authorize.net 

In contrast to previously mentioned payment service providers, Authorize.net is one of the world’s most widely used payment gateways with more than 430,000 business owners using this online payment mediation. This was a payment solution established by Visa back in 1996 and nowadays, it handles a billion transactions per year. 

The most famous e-commerce platforms as Magneto, Volusion, and X-Cart are the platforms compatible with Authorize.net. 

Autorize.net has the levels of functioning and if you decide to get an all-in-one solution including merchant account and payment gateway, you will be charged $25 per month and 2.9% plus 30 cents per transaction. If you decide to use only the gateway option then you will pay $25 per month, and 10 cents per transaction plus 10 cents of a daily batch fee. 

5. Braintree

This online payment platform is known to be the online payment gateway and merchant account solution known for collaboration with famous tech startups like Airbnb and StubHub. In 2013, PayPal bought the company, and Braintree is now a constituent part of the PayPal ecosystem. 

However, Braintree is more focused on the companies with higher sales volumes and bigger corporations operating worldwide. These corporations usually need customization capabilities so that Braintree users are offered a number of payment options and among them, the most distinguished ones are PayPal, Venmo, debit and credit cards, Google Pay, and others. 

An unavoidable part of the online payment platforms is the charging fees, and speaking of Braintree, there are no set-up nor monthly fees. Regarding transaction fees, Braintree will charge you 2.9% plus 30 cents per transaction for using qualified cards. 

6. WePay

This payment platform is unique since WePay is an online payment solutions company that provides payments for independent software vendors and software platforms. WePay was founded in 2017 and is the payment method that enables efficiency like same-day deposits to some bank accounts. 

6 Online Payment Services

This payment platform is sufficient for small businesses to accept payments through the various software platforms

Since there are usually charges whenever the transaction went through, WePay functions according to the changed principles. Namely, each software vendor or platform, or provider negotiates their own rates with WePay, therefore there can be changed rates for the different companies. If there is no set rate then they will go with 2,9% plus 30 cents per transaction.

Final words: 6 online payment services all businesses should utilize

Since there are indeed numerous payment systems, it is mandatory to choose the one fitting your needs the best and the one that will give you a hand providing your eCommerce activities. 

Nowadays, most of these transactions would be handled via your mobile phone or computer. However, there are some platforms that are not supported by mobile phones and will need to be connected to your PC. 

If you are planning to connect your business with the website then you should decide on the payment service that will secure both your client and you and minimize any kind of breach or system failure that will let both of you hang. 

As previously explained, some of the payment platforms will allow you to receive funds directly to your bank account while some will not. 

To summarize, while selecting an appropriate online payment service, it is essential to consider how your potential clients will interact with it, as well as if it is better to go with the most popular services or remain with the conventional ones.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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