How to recieve payments online

Posted by Nkem on May 20, 2009 at 04:42:01:

A lot of companies and individuals have a significant web presence now more than ever. There is an increasing growth in the web industry and the number of websites worldwide. Now even individuals are quitting their jobs and embracing the new one called blogging. The problem most people and from different locations are facing is how to receive payments online in order to increase their turnover or donations.
There are many was in which one can receive payments online but it involves primarily making sure that you can accept credit card on the site.
Credit cards and processing them are necessary to receive payments on the internet and you could consider the following options when it comes to doing so;
- Merchant account
- Paypal
- Escrow
- Direct deposit.

All of these and more are many ways in which funds are transferred on the internet without the 2 or three partied meeting in person.
With a merhcant account, credit cards and it's details are used on the site and processed on the go, some are processed in batches and later when the payment has been approved, the e-receipt is then sent to the payer via email containing billing information. This type is better as it allows for direct crediting of your merchant account with the funds involved but it has also been show to have high risks due to credit card frauds and high maintainance fees.
Paypal is becoming one of the most popular means of sending and recieving money online without a merchant account, all you need is your bank account or credit card to set up the account and then you can send funds to any email address. Once the sender and receiver have email addresses, they can make and receive payments online without meeting each other.
Paypal payments are popular used among small businesses and individuals or bloggers who want to keep a donation box on their site.

Escrow is a kind of service that allows the transfer of funds from one bank account to another internationally. Funds are kept by a third party who later makes the transfer to the receiver at their prompting.
Escrow are usually used for people making large purchases online or contractual payments like domain brokering and sales, e.t.c.

Direct deposits involved when the cash is paid directly into the bank account of the seller or receiver before/after an online transaction has been made and goods or service is offered after confirmation of the deposit. This method is commonly being used in developing countries or by people who don't have easy access to the other more advanced forms of payment. It takes time before deliveries are finally made.

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