eCommerce payment system is an electronic way of processing payments for goods and services over the Internet. It allows online consumers to precede the payments with credit cards, third party payment providers, digital wallets, or cash.

There are generally two types of online payment methods: manual and automatic. Within each type of payment method, there are often multiple payment options.

What are manual payment methods?

Manual payment methods are one type of online payment system that don’t require customers to submit their credit cards (Stripe) or use online payment providers (PayPal) during the checkout process. Manual payment methods allow customers to pay with manual transferring or handing over the payment with cash. There are generally 5 types of manual payment methods:

• Cash on delivery (COD)

• Card to card

• Point of sale (POS)

• Bank transfer

• Electronic check
  
  

Cash on delivery (COD)

Cash on delivery is a method of payment that requires customers to pay for goods at the time of delivery. For example, customers place an order on a website and request delivery. The customer chooses cash on delivery as a payment method and does not proceed with payment. Once the order is delivered, the customer pays the cash according to the invoice.

You might also like to read: Order on WhatsApp.

Card to card

Card-to-card payment is the process of exchanging money from one card to the other. Card to a card payment method is the easiest and safest way to pay for your purchases. It is a secure way of making payments without having to share your card details with the merchant.

The card-to-card payment method also allows customers to pay for their orders at the time of order delivery.

Point of sale (POS)

The POS payment method is a type of electronic cash register that is widely used in brick-and-mortar stores. The POS system can be a hardware device or software on a computer.

The hardware includes the cash register and terminal, which are connected to the internet or network. The software includes the operating system and point of sale application for processing transactions such as credit cards or checks. POS payment can be another option of Cash on Delivery payment method.

Bank transfer

The bank transfer technique is similar to the debit card method in a way that it transfers cash directly from one bank account to another. A bank transfer produces the same effects as a debit card transaction, however, a bank transfer eliminates the requirement for the physical debit card in the transaction.

Electronic check

An electronic check, also known as an e-check, is a type of payment made over the Internet or another data network that works similarly to a traditional paper check. They require the payer’s name and the amount of the payment, plus the routing and account number of the individual checking account.

Automatic payment methods

Third-Party payment providers

Third-party payment providers are companies that provide payment services to eCommerce stores. They help eCommerce merchants process payments and provide them with the necessary infrastructure for accepting online payments.

One of the popular third-party payment providers is PayPal.

PayPal allows customers to proceed with payments online without having to create an account with PayPal by using a credit card or debit card instead.

Another feature of PayPal is that it allows you to embed a “Buy Now” button on your online store so that customers can buy from you without having to leave the site they’re browsing.

Customers are normally not charged when they use PayPal, however, it charges fees to sellers: from 1.9% to 3.5% + fixed fee.

Other examples of third-party payment processors are Ingenico, Cybersource, Due, Amazon Payments etc.

Debit & credit card payments

Stripe is another giant payment processing software to mention. It provides the infrastructure for eCommerce businesses to accept payments. Stripe allows you to accept payments from your customers with a debit card.

Amazon Pay

Amazon Pay is a very convenient way of paying for items online, especially if the buyer has an Amazon account. It is a global payment system that allows Amazon customers to use the payment information already stored in their Amazon account to make purchases on third-party websites and apps.

Amazon Pay can be used to purchase items on any website that accepts it and can be done without having to enter credit card information or other sensitive personal data at checkout.

Google Pay

Google Pay is a digital wallet service developed by Google. It allows users to store credit cards, debit cards, gift cards, offers and deals, membership and loyalty cards and offers on their smartphones.

With Google Pay, people can use their Google Account to pay for goods and services in stores and online. When a customer selects to pay with Google Pay, the transaction is completed on the merchant’s website or in-store terminal without the need to enter card information.