Best Software And Services For Online Bill Payment

Ten years ago, consumers weren't confident using their credit cards online, but now 3 in 4 Internet users do their banking online. Although the world of online payment services may appear complicated, its fundamental goal is to make it simpler for your members, clients, or donations to support you in a way that works for them.

Why is the need for online payment services?

If you're like many small businesses, the main methods of payment collection are cash and checks. While this may be working for you right now, integrating online payments offers you and your supporters many benefits.

Fulfill Expectations

People feel more at ease making online payments. When members, clients, or supporters are prepared to join, sign up for an event, or make a donation, they want to be able to do so swiftly and efficiently. It may be argued that websites that don't accept online payments are outdated.

Accelerate The Procedure

From submitting an online payment to updating your bank account, the entire procedure can be completed in a matter of seconds. In the end, your business will have better cash flow and practically, and attendees will be informed straight away if their registration for an event was successful.

In addition, the online payment provider informs you immediately if the payer has enough money to cover the transaction instead of learning about it a week later when the check bounces.

Save you a lot of hassle.

Automated payments also spare you the effort of manually recording the payment and depositing the check. Online payments are processed automatically for your website once you've put them up. No credit card data is handled or saved by you. All member record updates are handled automatically.

What Are Payments Made Online? Terminology for Online Payments explained.

When referring to online payments, several words are used almost interchangeably:

Payment system merchant account, payment gateway, payment processor, payment provider, or payment service

All of them refer to an organization, service, or program that serves as a financial intermediary between your website and your consumer, as well as between the two of you and your bank accounts, even if they are distinct and have slight variances. Each makes it easier to do online transactions and process payments online.

Payment Portal

An online payment gateway is a program that collects requests for online payments from your website and sends them to the payment processor. The payment gateway can be compared to the electronic version of the register when you swipe your credit card at the grocery store.

Transaction Processor

A payment processor is a service that verifies the credit card information of the buyer (such as the information of your member, donor, or supporter) and determines whether they have enough money in their account to cover the payment. If the customer has enough money, the transaction is approved, and the money is taken out of their account. The payment gateway receives the transaction's status and relays it to your website as a status message. The business that handles your payments may also give you the tools you need to take payments in person, such as a card swiper.

Payment Service

The business that runs the payment gateway or payment processor services is known as a payment provider (or payment service provider). Some people will use both.

Payment system vs. payment service

Each payment gateway a payment provider offers, with varying features and costs, is referred to as a payment service or payment system. For instance, PayPal is a payment service provider that provides several payment services or payment systems like PayPal Payflow Pro and PayPal Express Checkout (and if you're looking for a Paypal alternative, here's a great list, or keep reading to see our review of various online payment systems at the bottom of this post).

Customer account

The concept of a merchant account is also crucial to comprehend. When an online transaction is successful, money is moved from the buyer's account to your merchant account. A merchant account is a unique bank account used solely to handle money received from credit and debit card transactions. You typically need to open a merchant account with your payment provider to accept online payments. The money that builds up in your merchant account is routinely transferred to your company's bank account.