Online Payment Solutions Key Terms
Get the vocabulary you need to make a smart choice of online payment solutionsBusiness owners that do not accept online payments are leaving money on the table. Allowing customers the ability to make purchases from your website is essential in the modern age. When researching online payment services, you may be confused by some of the words you hear. If you want to choose the best payment service for your business, you should learn some of the lingo, so that you understand the available features and can choose the ones that are most appropriate for your business.
Shopping cartAn online shopping cart allows your customers to place many items into a virtual shopping cart and pay for all items at one time. This is essential if you own a store with physical products.
Merchant servicesMerchant services are offered by banks to allow small businesses to accept credit card payments. Many banks allow you to use their merchant services to accept online payments.
Electronic check authorizationWith electronic check authorization, business owners are available to accept electronic checks, or e-checks, from their customers. This eliminates some of the hassle of paper checks and allows customers that do not have credit or debit cards to make purchases through your site.
Hosted and licensed e-commerce solutionsA hosted e-commerce solution is both hosted and owned by the main company. It has a lower initial cost, but higher monthly fees. With a licensed e-commerce solution, a business purchases the rights to use the software. It has a higher start up cost, but lower or no monthly fees.
Recurring billingWith a recurring billing system, you can effortlessly charge regular payments from your customers. This is ideal for subscription-type services. You can also use it to spread the cost of a high ticket number out over a few months.
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