Online E-Credit

What are the Major Types of Online E-Credit?

Before any other form of online payments were developed, acquiring a merchant account was the only way of accepting online payments. However, recent times have witnessed several options with regard to online payments. Thus, as an online merchant you’ll need payment service providers such as Payment Asia to advice you on the major types of online e-credit so you can make an informed decision.

The Conventional E-Credit Processing

This mode of e-credit processing involves components such as merchant accounts, shopping cart gateways and payment gateways. A Merchant Account was the first mode of payment in the digital era. The merchant was required to open an account with a bank that could accept card payments from customers from other banks as well. The cash flow for such accounts was often termed as a reverse credit card account. Thus, as a merchant, you would regularly transfer funds to another account. It, therefore, enabled cash flow from a credit card account to a checking account. Shopping cart software is a more complex process. It involves a link between the customer and selected items in the cart. This software ranges from simple software to advanced ones that support programming and database functions. Payment gateways such as Payment Asia combine your business website and shopping cart directly to your account. They handle all transaction communications between these entities ensuring safety and an efficient transaction process.

The Third Party E-Credit Provider Mode

This form of e-credit transactions is similar to the conventional mode. However, the only difference is that you are not required to open a separate merchant account for this mode. Similar to the conventional method, the shopping cart in the third party e-credit payment system is responsible for maintaining a connection between your customer and the items selected by them in the cart. Once your customer decides to pay, they are directed to a webpage maintained by the third party e-credit provider. At this point, the credit card information of the customer is collected. Your website will not save this information as the third party e-credit provider is responsible for that. It is thus, important to choose payment gateways such as Payment Asia that secure this information to prevent fraudulent activities.

The Person-to-Person E-Credit Mode

Person-to-person or PtP as it is often referred to, is another inexpensive mode of e-credit transfer. Payment Asia review has proved that it is one of the most preferred PtP services for online transactions. This mode requires both the merchant and the customer to maintain an account with the PtP provider. As the PtP provider handles the entire process, it does not require any external involvement of the bank. This process automatically sends an invoice to buyers and sends and receives non-credit card funds. Now that you’re aware of the major categories, you can choose the best option and register now!