Last updated on July, 23
🏆 Best Online Payment Services for August 2021
Say hello to a hassle-free and simple way of making payments online! All you need is the right online payment service to experience seamless, secured, and speedy transactions wherever you are.
What is an online payment service?
In an age where the digital world is rapidly developing, our businesses and personal interactions also expand online. No matter what your organization, company, or business is, it’s now essential to offer customers more than just the traditional payment methods. An online payment service gives customers hassle-free, secure, and convenient online transactions.
Why do you need online payment services?
You may ask yourself, “why are online payment services necessary?” For the longest time, people have been using traditional payment methods, like cash and checks. But to make things more comfortable and efficient, everybody adapted to new technologies and innovations. Take a look at the following reasons to need these payment services.
Increase Conversion Rate and Revenue
If you want your business to thrive, the solution is to put it up on the web! How many companies are still not using the internet to promote their brand and achieve higher revenue? Only a few are still manually processing transactions because various payment options lead to higher income and customer satisfaction.
Online payment services are revolutionary! Not only do they reduce paperwork, transaction costs, and personnel costs, but they’re also user-friendly and less time-consuming than manual processing. Plus, they help businesses extend their market reach.
Have you tried shopping online but realized that you don’t have any cash on hand? When you purchase goods and services online, you have the option to pay for them through electronic payment methods. These types of payment services save you from pulling out cash. There’s no need for withdrawals. All it takes is a few clicks!
Convenient and Accessible
The power of convenience surpasses most necessities in the modern world, where everyone is buzzing with tons of work and activities. The time saved by using online services contributes a lot to people’s inclination towards the service. Anyone can pay online whenever they want and wherever they are.
Speed Up Payment Process
Using online payment services can take only a matter of seconds, from submitting an online payment to updating your bank account. There’s an almost immediate confirmation of transactions, too—no more waiting time! That’s the beauty of these online payment services.
Save Yourself from Troubles
Once you set up an online payment system for your website, payments are automatically processed. Automated payments save you the trouble of depositing checks and manually recording payments, giving you more time to focus on growing your business.
Having cash is handy, but it’s easily consumable. The great thing about online payment services is that it allows you to manage finances better and check your virtual account to find your transaction history. Electronic payment services let you think before proceeding with a transaction.
Core features of online payment services
Choosing online payment processing services could be tedious and overwhelming since you have a wide range of options out there. However, it would be easier for you to know what features are best incorporated in the payment service you want to get. Here are some key features to look for in choosing online payment services.
Of course, security is essential above anything else! Consumers look for online secure payment services because cases of sensitive data breach leading to fraud or identity theft are growing every year. Luckily, the best payment service provider has highly effective security measures and anti-fraud features that make transactions safe and reliable.
An important consideration is how well an online payment service will integrate with your current platform. You want to make sure the features of your online payment system matches your brand. Also, check for compatibility since you may encounter payment services that you’re not eligible to use or not offered in your area.
Unlike physical payment transactions, where you have to deal with a lot of paperwork and constant follow-ups to track your payments, online payment services give you the option to monitor your payment transactions’ progress. Most service providers give you notifications that show whether your payment transaction is pending, has failed, or has pushed through.
Although transaction completion varies on the type of online payment service that you’re using, fast and timely processing is a feature that you should look for. In instances where you urgently need your money transferred, an online payment service that can immediately process your payments would make you feel at ease.
Reliability and Assurance
Payment transactions made online can be scary for some. You don’t want your money to fall into the hands of the wrong people, so you need to be smart and careful in choosing your service provider. Look for an online payment service that guarantees reliability, assistance, and troubleshooting features in times of transaction issues.
24/7 Customer Support
Customer support must always be available to help you sort out transaction issues, such as failed payment transactions, incorrect payment details, refunds, and other disputes with the other party. Money doesn’t grow on trees, and therefore, issues regarding money are a sensitive matter for most people, and you need to resolve them as quickly as possible
Types of online payment services
Online payment services are available worldwide. Whether it’s for a business transaction, paying for your bills, or merely buying products online, you can choose an online payment service that works best for you. The following are some types of online payment services, including their benefits and drawbacks, giving you an idea of what you can use.
ACH Online Payment Services (Electronic Checks)
An ACH check or electronic check is an online payment service that pulls funds directly from a checking account. It saves you from the hassle of writing a paper check or making a debit or credit card transaction to pay a bill. The ACH network is also responsible for transactions, such as direct deposits from employers’ bank account to their employees.
Pro #1: Automated
With ACH payment services, you don’t have to remember to make payments! You simply let the system do the job for you. Avoid late fees and missed payments by authorizing your biller to pull funds from your account. All you need is to provide your bank account and checking account routing numbers.
Pro #2: Easy Tracking
Unlike paper checks, ACH payment services allow you to easily track payment transactions since the payee name appears on your bank statement or financial software. With ACH, you don’t need to wait for the postal service to deliver payments to you or to worry about the mail getting lost.
Pro #3: Convenience
Instead of writing or collecting and processing paper-based checks physically, you’ll have more time in your hands. You can focus on other tasks, whether it’s personal or for business. There’s no need to mail payments, and you can let customers create scheduled payments without reauthorizing them.
Pro #4: Safety and Security
A safe and secured online payment service is crucial since there’s money involved. ACH payment systems help shield you from fraud and other security issues. Transactions are only processed after both the sender and receiver have authorized their respective banks’ cooperation.
Pro #5: Reduced Carbon Footprint
Since e-Checks are electronically-made, there are practically no material resources involved. It’s more environment-friendly because it doesn’t need paper for checks, envelopes, ink, stamps, printers, photocopiers, and even fuel for transportation. Think about helping the environment!
Con #1: Less Control
Although having your payments processed automatically is a good idea, you give up some control. In exchange for the service’s convenience, you hand over details about your bank account, giving the other party access to your information and account.
Con #2: Pay More Than You Should
In instances where a biller error accidentally occurs, you may end up paying more. A large error could drain your account, leading to insufficient funds, bouncing other
payments, and accumulating fees. Auto payments are deducted even if you have inadequate funds, triggering overdraft fees.
Con #3: Continued Payment
Since you depend on the system to automatically proceed with your transactions, you may forget what you’re paying for if you don’t see the bills come through. It could potentially result in continued payment, even if you no longer use the service you’re paying for.
Con #4: Not for Time-Sensitive Transactions
Batch processing is perhaps the biggest drawback of this payment service. Before a batch of pending transactions is processed, it must reach a certain threshold of incoming requests. If you urgently need your transactions to push through, then this may not be the best service for you.
Online Payment Gateway Services
Online payment gateway services allow merchants to accept credit and debit card payments online. It authorizes and processes payments for online transactions, acting as a middleman between a merchant and a customer’s sponsoring bank.
Pro #1: Accepted Payment Methods
Customers are more likely to make purchases when they are offered more payment methods. With payment gateway services, customers can pay using their preferred payment methods like any major credit or debit card.
Pro #2: Wide Coverage
Payment gateways services are accessible from around the world. They operate in different countries and languages. Plus, they accept a wide range of local currencies, so customers won’t have to worry about conversions.
Pro #3: Removes the Tricky Parts
Don’t like being in charge of the complicated processes of purchase transactions? If yes, then payment gateway services could help you out. They deal with encrypting sensitive information like credit card details, ensuring safe transactions, and helping you meet specific standards for data security online.
Pro #4: Saves You Time and Work
Online Payment Gateways remove the need to manually input information you receive, saving you more time and work. Plus, the money is usually transferred to your bank in just two days, depending on your service provider.
Con #1: Transaction Fees
Anything of significant value usually comes with a cost. Third-party tools like payment gateways may charge you with added expenses such as transaction fee, chargeback, merchant account fee, and setup fee. Remember to go through the gateway fees carefully so you won’t get surprised by them.
Con #2: Lack of Anonymity
Most people may not have a problem with their lack of anonymity when conducting transactions. Remember, though, that some of the personal information will be stored in the payment system database.
Con #3: Internet Access Is a Must
Since you’re dealing with online payments, it’s a must for you to have internet access. It will be impossible for you to complete a transaction or get to your online account if your internet connection fails.
Digital Wallet Payment Services
A digital wallet, also called an e-wallet, is an online service you authorize to conduct personal or business transactions. It allows you to store payment cards and IDs like driver’s licenses, loyalty cards, and insurance cards, as you do with a physical wallet. An e-wallet is usually carried on an electronic device, such as smartphones, desktops, and laptops.
Pro #1: Go “Wallet-Free”
Digital wallets free you from carrying around a physical wallet where you place all your cards and cash. All you need to do is make a transaction online or have your device scanned when paying for the purchasing items.
Pro #2: Access to Other Types of Cards
Electronic wallets typically store credit cards and debit cards. If the provider is compatible with the wallet you’re using, you can store rewards cards, loyalty cards, and discount coupons within your digital wallet.
Pro #3: Offers More Security
There’s a slim chance to recover a lost wallet and everything in it. But with electronic wallets, your information is stored through a third-party provider and is locked with a password. Now, you don’t have to worry when you lose your device!
Pro #4: Incentives and Rewards
E-wallets offer incentives, which you can use instead of paying money. You can benefit from discount coupons to pay for food, travel, or other necessities like fuel.
Pro #5: Helps with Budgeting
As digital payment methods emerge and gain favor among users, the idea of digitizing your budget has also been accepted. Many e-wallets link you to budget apps that let you track your spending habits.
Pro #6: Easy Transfer
Digital wallets come in handy, especially for those who want to easily send money to their relatives. You can transfer funds to practically anyone, even when they’re residing in different nations. All it takes is some clicks, and your money’s securely sent!
Pro #7: Cryptocurrency Wallet
A digital wallet can also be used to store your cryptocurrencies or digital money. When you invest in cryptocurrencies, a digital wallet is required for your transactions. It’s also where you’ll maintain your cryptocurrency balance.
Con #1: Not Fully Available Worldwide
Although digital wallets are growing their reach worldwide, the number of retailers who accept e-wallet payments depends on the brand of e-wallet you choose. Some transactions may be restricted because an e-wallet service may not be available in a particular area.
Con #2: Charged Device is a Must
Of course, having an online digital wallet is convenient in many ways, but one problem you get with it is that you can’t proceed with your payment when your device battery is dead. Unlike a physical wallet, which doesn’t run out of charge, you need to stay connected to the internet for a payment to succeed.
Con #3: More Charges to Process Payments
Many of the electronic wallets which offer a rewards program will charge you a fee to transfer those rewards. You may be required to process payments in a specific way to access these benefits. At the same time, costs are added in exchange for the convenience of this payment method.
Con #4: Could Encourage Reckless Spending
When money is electronically-based instead of a physical item, some people struggle with their spending habits. The money doesn’t feel real, so proper budgeting doesn’t take place. If you are already struggling to maintain a budget with a traditional wallet, then an electronic wallet might make that issue even worse.
Who needs online payment services?
Perhaps merchants are one of those who can immensely benefit from payment services online. Most merchants buy and sell products online since they have more audiences to offer their products and services. Choose online merchant payment services that are perfect for your business needs.
If you want to buy products and services, payment online can quickly be made. Whether you’re just at home booking your next travel ticket or at your favorite cafe looking through some items to add to your shopping cart, online payment services will make your transactions a breeze!
Online payment services for businesses have become a go-to in payment transactions because consumer behaviors have switched digitally. A business needs to adapt and thrive in every situation while keeping a consistent revenue flow. These services save time and effort for both companies and clients.
It’s not only for business purposes that you can use online payment services. Parents can use it to shop for clothes, gadgets, and household furniture. Online shopping has become a trend, and you and your kids can join the group of shoppers—there’s no need for you to travel to the mall. You’ll just wait for your products to be delivered to your doorsteps!
Even students can benefit from online payment services. They can shop online for their requirements, pay for their school fees, and other necessities and lifestyle needs. Plus, those students living away from home can use these services to pay for their dormitory or apartment utility bills and rent.
Students’ tuition and other educational fees are not the only payment transactions that educational institutions make. Online payment services for schools are also used to pay their employees and conduct other business transactions to improve the institution.
Companies with relatively large staff and employees can use online payment services to handle payment transactions better. It’s more efficient and less time-consuming compared to traditional payment methods. It also gives companies better tracking means of inflow and outflows of funds.
Online payment services for nonprofits are used to handle financial donations, collect membership dues, sell online merchandise, and sell event tickets to gather funds. Collecting donations online would be safer and more convenient, especially if there’s a large sum of money involved.
You would have to spend some money to find the right tools to launch a fantastic website. Online payment services for websites can be used to pay for a web-builder, a web hosting service, marketing tools, and maybe some themes to brighten up and beautify your site!
Payment services should also be available for leisure, such as purchasing gaming needs. Online gaming is gaining popularity in the digital world, and most gamers purchase items or gaming tools through payment services online. You can have all the fun you want while these services process your transactions.
Individuals Paying Bills
Instead of going to physical payment centers and spending more time lining up in queues, bills can be quickly paid in the comfort of your home. Whether it’s for an electric, phone, or internet bill, you just have to let the online payment systems pay it for you. Then, you’re all set. No sweat, no problem!
You can travel safer with online payment services. Whatever destination you have in mind, the world is full of digital possibilities that you can enjoy. You no longer have to worry about bringing a wad of cash with you. Plus, the risk of losing money is also slim, giving you more money to spend on souvenir items.
Step-by-step guide on how to find the best online payment service
Step1: Identify what you’ll use it for.
Before anything else, you should think of what you’ll be using the online service for. Is it for personal use or business transactions? Once you’ve got an idea of how you want to use the service, you can now look up options and recommended services suitable for you.
Step 2: Research and review the different payment methods.
The next step is to research online. You can look for the top 10 online payment services then compare them, or you can ask your peers for the type of service they use. Remember to check for reviews and compare features to narrow down the list of online payment services you will consider.
Step 3: Consider your customers.
If you’re using it for business, you might want to consider your customers’ purchasing mindset. If you’re a customer yourself, what payment options would you like to get? The safest way to go is to look for payment services that offer a variety of choices. That way, you’ll have a wider customer reach.
Step 4: Check the costs.
Consider your budget. You can opt for free online payment services, but those services often lack the security features that paid services offer. If you’re using it to transact small amounts of money, you can go for a relatively cheaper service.
Step 5: Evaluate the risks.
With money transactions, you always have to consider risks. Even the most reputable service providers can have issues with transactions. The goal is to find the perfect online payment service that fits all, if not, most of your transaction needs. Just remember to weigh the pros and cons along with its cost-effectivity.
Step 6: Make sure it’s reliable.
Check for authenticity and reliability! Carefully go over the service provider’s transaction procedures, reviews from previous and existing customers, and even their terms and conditions. Before committing to any online payment service, you want to make sure that your money will reach its destination.
Frequently Asked Questions (FAQs)
A debit card is linked to your checking account and is generally accepted as a payment method along with credit cards. Since you’re taking from your own money, there’s no interest associated with paying using your debit card.
Meanwhile, a credit card allows you to borrow money from lenders and use that to pay for your transactions. Unlike debits, a credit card has added charges per transaction, and you may be charged with interest if you have a balance on your account. Take note that there is a credit limit, which varies among customers.
Since an ACH payment service processes payment by batch, it’s challenging to reverse a payment once the transaction is successful. It would be easier for merchants to refund a buyer’s purchase on their end. However, if your payment was made without your consent, you can contact the merchant and ask for a refund.
Digital wallets are divided into several types. Let’s take a look at each of them.
An online digital wallet is a payment service that allows you to make purchases through your device app. You can also store your cards, coupons, and tickets here.
A mobile digital wallet is usually accessible through an app that you can install on your device, and you can use it upon checking out of a store. The “tap to pay” option is also available in mobile wallets.
A desktop wallet allows you to create a cryptocurrency address for sending and receiving your digital money and store your private key.
A hardware wallet is a type of cryptocurrency wallet that stores your private keys securely.
A reliable cryptocurrency wallet helps the buyer and seller send and receive cryptocurrencies from one wallet address to another. In choosing a cryptocurrency wallet, here are a few integrated features that you can look for.
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Person-to-person, also called peer-to-peer payment, are online services that allow you to send money to other people by searching for their email address, username, or phone number. Whether it’s to send your part of the bill to your family or pay back a friend for lunch, P2P transactions are fast and usually free.
There are several things you can do to find the right payment service for your business. Besides defining what you look for in a service, you must conduct a thorough online payment service comparison among the brands that offer it.
You can also study the top 5 online payment services for small businesses to get more specific results. Once you’ve found ideas on the services that are suitable for your business, you can now compare online payment services and look for one that falls under your budget and security needs.