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SOLUTIONS FOR ECOMMERCE
There are several methods to make
payments other than just credit and
debit cards. Consumers who do not have
credit or debit cards can also use
electronic payments to pay for their
purchases. This article lists some of
the methods which can be used by
customers who don’t prefer to pay using
the credit card. However, the fact that
over 90% of the consumers prefer to pay
using credit card still remains.
There are several organisations and
businesses that are very eager to help
you market and sell your services and
products online. Fundamentally they fall
in to the broad categories given below.
There is no perfect solution that suits
all types of situations. Every solution
comes with some advantages and
disadvantages in different situations.
Therefore, the correct choice depends on
your business requirements.
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Internet Merchant Accounts
If you obtain the
merchant status, then you have to
consider some factors:
Pros:
·
Your customers need to
familiar with payments using credit
cards
·
Customers do not have to
install any special plug-in when paying
using their credit cards.
·
Accepting credit cards
leads to impulse buying by the
customers, there by increasing your
business profits.
·
You will get the contact
information of your customer’s which
helps in marketing and follow up sales.
This option is advantageous for the
merchants but most customers find this
very irritating.
Cons:
·
Consumers are still not
very comfortable to enter their
financial details on the internet.
·
All your customers may
hold a credit card.
·
This option is not
suitable for soft products like
graphics, art, software, etc. Merchants
who sell such goods have to make sure
that the customer pays for the product
he downloaded.
·
You have to take care of
chargeback’s.
If you are not able to get your merchant
account from a bank, then you can
approach the merchant broker. Brokers
will arrange for merchant accounts for
any type of business even if it is
considered high risk. However, you will
have to pay discount fees and setup
fees.
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Electronic Cash Transactions
Electronic money
is nothing more than an arrangement
where the consumer will pay for his
purchases using electronic money. Good
examples are Cyber Cash, Cyber bucks,
DigiCash, etc. As technology advances
and makes credit card transactions more
secure the consumers become more
comfortable to pay be credit card. Then
these methods will be used much lesser
until they are no more used.
Pros:
·
Credit Card Transactions
are not required.
·
Chargeback’s is no longer
a concern.
·
Works well with micro
payments.
Cons:
·
Several people are not
familiar with this technology and
therefore, don’t use it.
·
This process is seen as
“a hassle” by many shoppers who are
confident with the security provided for
credit card transactions.
·
Both the customer and the
merchant should participate before this
option can be applied.
·
The customer is saved
from impulse buying. Though this is
beneficial for the customer, it is
highly disadvantageous for the merchant.
·
Not available on a global
scale. |
