Select several different payment systems and compare them objectively, their good and less good points, from the customer’s perspective. You may wish to use table to present your comparisons clearly
unit 8 TASK 2 - Different payment systems D2
Produce a report that selects several different payme...
Introduction: E-commerce websites tend to use electronic payments. Electronic payment
refers to paperless monetary transactions. This is where the electronic payment has radically
changed the business by reducing its paper work. Transaction costs, and labour cost. By a
business being user friendly it helps the business to consume less time than manual
processing. As it helps the business to expand its market reach. In which, some of the
different payment systems are the following; credit card, debit card, smart card, e-money
electronic fund transfer (EFT), PayPal, NoChex and electronic cheques. In this task, I will be
both evaluating and comparing the different payment systems used by e-commerce down
below.
PayPal: PayPal is an e-commerce also referred to electronic commerce company which
makes it easier to make payments between parties via online funds transfer. PayPal enables
customers to start an account on its website, which will be connected to the customer’s
credit card or either checking account. Once the identification and proof of the funds have
been confirmed, the customer will be able to start sending as well as receiving payments to
and from other PayPal accounts. PayPal tries to make online purchases safe and secure by
having a form of payment which doesn’t need the payor or payee to disclose any credit card
as well as bank account numbers.
PayPal is also a much quicker and faster method of paying for things online. This is because
customers only require a username as well as a password to pay through PayPal. PayPal
accounts are also free for every customer, meaning
there is no monthly fees for businesses. As
businesses will only need to pay a fee if and when a
transaction will be made through PayPal. In-which,
these fees will normally be much higher than when
compared to a regular payment gateway e.g. Realex
or Braintree as it is a fast and convenient way to
accept payments without having any kind of upfront
costs, however small businesses may still prefer to
use PayPal.
, Good points of PayPal Less good points of PayPal
Credit card security: When customers Fraud: PayPal can easily be exposed to fraud.
sign up for a PayPal account, As if someone does cheat, the main seller will
customers can type in the credit or be paying the price when it happens. This
bank account they wish to purchase could be by losing the money or even getting
one time in the PayPal secure system. their account frozen.
Brand name and recognition: The Locked accounts: There are strict regulations
brand name PayPal boosts customers which are linked to the limit the number of
confident. As It makes sure both the transactions via PayPal. Thus, PayPal may
webstore and vendor never get the block the customer’s account in precaution if
credit card/bank account details of they notice any suspicious situations.
the customer, which adds to the trust.
Multiple account options: Allows a Bad customer service: There are no numbers
customer to have different multiple which are easily found on the website, even
accounts in different categories. As when a number is found. No-one is on the
these accounts are able to carry other side. There have been numerous
various privileges and have different amounts of complaints of emails receiving
rules. only automated responses. In-which, eBay
staff are not able to do much either when
contacted.
Ability to accept international Painful verification process: Customers will
payments and cards: PayPal gives have to give their account and routing
customers the option of paying as number. Where PayPal makes token deposits
well as accepting payments in 23 where customers will have to wait for an
currency types. extended 5 days to arrive in their account.
Customers sometimes might have to wait
weeks before they receive their statement in
the mail.
Integrating payments with eBay: Bad seller protection: PayPal is more likely
Businesses as well as premier vulnerable to fraud. Which is bad news for
accounts offer different tools for customers as the slightest hint of suspicion
better integration with eBay. Making locks away any customers PayPal account. The
buying and selling much easier for complaint procedure is also poor which does
customers on eBay. not redress any issues.
NoChex: Nochex is an online payment service
provider. In-which, it is a private company which
has twenty four employees who are based in the
U.K (United Kingdom). Nochex generally caters
small to medium-sized businesses. Nochex
currently offers three various accounts e.g.
personal, seller, and merchant. The most used accounts by customers are the seller and
merchant accounts. These enable online payments to be processed via the seller’s website.
Every payment which is made through Nochex supports the 3D Secure XML standard
designed in-order to limit the risk of fraudulent card holder not present transactions, and
are also PCI compliant. Nochex does not need the account holder in-order to procure a bank
merchant account or even payment gateway. Nochex is quite a similar service to both PayPal
and Google Wallet. As Nochex was originally used by eBay before it had acquired with
PayPal. However, due to being so out grown it has decided to target their services at either
private limited companies or smaller sole traders.
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