Last editedMar 20232 min read
Any merchant can now operate as a global business thanks to the proliferation of online payment methods. In simple terms, the payment methods available, from credit and debit cards to digital wallets and bank transfers, make it as easy to shop for an item on the other side of the world as it is to buy something from a shop on the corner of the street.
A merchant wishing to take advantage of this digital revolution needs to offer as many of the popular methods as possible, as customers who can’t use the payment method they prefer will simply look elsewhere. The online business payment solutions include the following:
Types of online payment systems
Money is transferred by direct deposit from the customer’s account to the merchant’s account. Both parties are protected by the ePayments Code, which is administered by ASIC (Australian Securities and Investments Commission), and deals with payments that are transferred from one account to another by mistake.
This online payment method is owned by Australia Post and enables customers to pay merchants through internet banking, giving them a choice of banking options. It means that customers can pay without entering credit card details, instead entering internet banking details via the Poli website.
This is one of the online payment methods that is usually used to pay bills rather than purchase goods. The customer may be charged for using Bpay by the financial institution they work with.
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Eftpos and Eftpos online
Eftpos was traditionally a payment method that was only available for use at a bricks and mortar checkout, and was generally less likely to attract a surcharge than when using credit cards. From 2016 onward, Eftpos online introduced the option for ecommerce purchases, with the promise being that it would cost less for merchants and customers than traditional credit cards.
Visa and Mastercard debit cards offer the protection of “payback rights” provided by many other online payment methods, as long as the customer in question selects “credit” rather than “savings” or “cheque” when paying. Some payments may involve a surcharge, however, which should be in line with the amount charged by a Visa or Mastercard credit card.
Popular credit card schemes include the aforementioned Visa and Mastercard, as well as American Express and Diners Club. Each institution offers a range of credit cards with different interest rates and other variable features. One of the main advantages of online payment methods that focus on credit cards is that they facilitate chargeback claims.
A chargeback applies to customers when they feel that a purchase hasn’t met their expectations, but can’t reach a satisfactory outcome with the merchant. The criteria and timeframe for a chargeback being made to a credit card account will differ from scheme to scheme, but might include:
The transaction is fraudulent
The goods or services purchased were not provided
The goods were received but were not fit for purpose
The online payment method known as a digital wallet includes Paypal, Visa Checkout and MasterPass. A digital wallet enables customers to store their bank account or card details online and make payments in the future using just a username and password. It should be noted that many of the digital wallets in use only offer the level of payment protection that is provided by the card or bank account that the user links the wallet to.