Draft:Understanding Online Payments
In order to accept credit card payments online, you need:
- An Internet Merchant Account (IMA)
- A payment gateway
There are two methods for acquiring an IMA and a gateway. They are:
All-in-One Payment Solutions - IMA and gateway are bundled together
Payment Gateways - Mix and match your IMA and gateway
To attract customers who prefer not to use credit cards online, it's easy to offer alternate payment methods, such as PayPal. Typically all that’s required for this is an account with the service provider.
Alternative Methods of Payment
All-in-One Payment Solutions
With an all-in-one payment solution your IMA and gateway are acquired from a single vendor. This option is beneficial if you want to:
- Manage just one vendor for all online payments
- Get all of your support from a single source
- Use easy-to-access reporting for all payment methods
Integrate only one application on your website back to top
Payment Gateways
Payment gateways combine separate IMA and gateway providers. Consider this if you already have a physical store presence with IMA capabilities from your existing bank. A payment gateway allows you to:
- Keep your existing IMA as you expand online
- Connect a compatible gateway with your existing IMA
- Retain the same gateway if you change IMA providers back to top
Alternative Methods of Payment
Because of credit card fraud and identity theft concerns, some customers are uncomfortable providing their credit card information on new websites or any that are unfamiliar to them. You can service those customers by accepting alternate payment methods like PayPal. With this option, many businesses — especially new or small businesses — find they can:
- Increase sales on their site. Customers can select an alternate payments provider that they already trust.
- Reduce shopping cart abandonment.
- Add flexibility for their customers. Customers can pay without sharing personal and credit-card information with businesses.
