Online Payment Basics

When deciding on what payment options to have on an e-commerce site, it is important to know the major methods being used.  The most used way of payment is by credit card, but some people also use debit cards, cash, and even checks. However, a majority of sales that occur online are made on credit or debit cards due to the simplicity of just entering in the required information and submitting the request.  These cards are sometimes referred to as payment cards, and along with stored-value cards, electronic cash and wallets, make up the four main types of payment used online.

Banking and the Internet

One of the main banking features that has yet to be made simpler is the use of checks.  There is a waiting period between the time the check is deposited and when the bank confirms the transfer of funds.

There have been some scams that were aimed at customers of different banks in which they received an e-mail requesting information that the bank would not usually request.  These phishing attacks were done in order for a person to receive bank account information from people and then go and rack up charges on their account that the person whose name the account was in didn't actually make. 

Another issue that occurs with online banking is identity theft.  Some of the information that thieves try to obtain include Social Security numbers, driver's license number, credit/debit card number, card verification number, passwords/PINs, credit reports, date of birth, phone number, and home address. The easiest way to avoid this problem is to not give out any information than you absolutely have to, or you could be a victim of identity theft.

Previous Section: Security

Payment Cards

E-Cash & E-Wallets

Next Section: Planning