Payment Method Huong Vu September 15, 2023

Payment Method

What is the payment method?

The payment method is the way in which customers purchase goods or services. There is a wide range of payment methods available, regarding different methods or different hosts of options (such as Visa or Mastercard). By accepting a payment method that is both preferred by the business and customers, several benefits can be gained, such as expanding more global customers, increasing conversions, saving transaction costs, or avoiding fraud.

  • Cash: One of the most common and easiest methods for physical goods and in the retail industry. You do not lose any extra fees to make the transaction. 
  • Debit/ Credit/ Prepaid Cards:
    • Debit card: A payment card which deducts money from your checking account every time you make a purchase, with daily purchase limits. 
    • Credit card: A payment card which borrows funds every time customers make a purchase, which will have to be paid back by cardholders plus an interest.
    • Prepaid card: A payment card which allows customers to make purchases within the amount that has been topped up in the card.
    • Although you may have to pay for transaction fees, cards can be universal, thus becoming more convenient for international transactions.
  • Mobile Payments: A contactless payment method that can be made with a portable device (such as smartphones, laptop or tablets). Customers can easily make online purchases, receive and transfer money to other people via mobile apps or payment gateways.
  • E-wallets: A financial account which takes users’ information, passwords, and allows users to purchase easily with a bank account.

Bank transfers: Where transactions can be made from one bank account directly to another, for users who have enrolled in Internet banking.