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.
Most popular payment methods
- 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.