Payment systems eCommerce: Comparison and Review

If you have an e-Commerce or you are planning to open it sooner or later you will have to deal with the various payment systems for eCommerce website, and choose the best payment method for your online activity.

What is the best payment method? What are the advantages of the various payment systems? And what are the disadvantages? In this article we will see the main payment methods available with their advantages, disadvantages and costs.

You will find in this article both online payment wallets and more classic methods; the use of one does not preclude the other, try to offer your customers a wide choice of payments.

What are the best eCommerce payment systems?

The question lends itself to many answers, I will present below all the payment systems for ecommerce that I have tried in person, giving you information that allows you to evaluate which is best for your e-Commerce project.

In the Online Payments for eCommerce you can assert that there are 3 different types:

  1. Bank Payment Gateways or Virtual Pos,
  2. Virtual payment wallet,
  3. Other electronic payment systems for ecommerce.

Virtual Bank or Pos Payment GateWay:

These are the payment systems provided directly by the banks or service with which they are associated. The convenience of these systems is that the money is effective on the bank account when the transaction takes place and the movements are identifiable on the current account, very convenient at the end of the month for those who deal with the accounting. The disadvantages are higher integration costs, absurd activation documentation, very high implementation times, and often higher commissions.

Virtual payment wallets:

They are alternative methods even if they are identical systems, but that come from banks with an edge over those in India. the various PayPal, Braintree, Stripe are part of this group. The fact that they are offered to a global and non-domestic public, are much more flexible in activations, very advanced back-ends, excellent guarantees for customers, often advantageous additions with free modules; on the other hand the reception of the money is not immediate as they are bridges and it is then necessary to make the transfer manually or automatically from the wallet to your account or credit card to have them available.

Bank Payment A-GateWay for eCommerce

These payment systems for eCommerce are not very appreciated by me, it is often a company only to have authorization from the bank, to move on to long waits also for activation.

Foreign online or POS payment systems are fortunately not so cumbersome in activation, but those in the hands of Indian banks are torture.

I give an example just occurred: 2 months ago for our ecommerce that we are developing, our client has requested activation, after 30 days from the request, the bank calls us to ask for credentials and the data of the agency that will develop the e-commerce and personal data of a technician responsible for integration. It would have been to give him a kick in the butt, but unfortunately it is for our client. System activation takes place exactly 50 days after the request. The customer in question has a huge turnover and has multiple services with the bank in question, as well as a dozen physical POS for over 20 years.  Now hear what the Indian man with whom we spoke says: to which I asked costs and commissions to integrate in the management system:

I would add incompetent and pure thieves.

Let’s not forget that Indian payment gateways have BackOffice interfaces that really suck.

B- Wallet: Virtual Payment Systems for eCommerce

Below is a list of payment methods with which I have dealt either directly or for my clients, they are in effect methods that can be substituted for Bank Payment Gateways, which I don’t particularly like

  • PayPal

PayPal in India is the undisputed payment system, it covers about 30% of online transactions, it has taken hold because it forced eBay sellers to use it as their preferred payment methods, and eBay in the past has been the main world eCommerce now largely outclassed, having said that PayPal still holds up the pace and is the main world payment method, but slowly he too is losing market share.

Advantages:

Very easy to integrate, all Open Source CMS for e-commerce integrate it by default in payments, so it is very easy to start. All users know this payment method as it gives great security; the backend is well done even if it should be reviewed.

Disadvantages:

Not really low commissions, ranging from 1.8% to 3.4% + € 0.35 for each transaction.

The percentage change depends on the turnover, the rather strange thing is that once the turnover is reached, you must be asked to access more discounts.

The system is extremely customer-guaranteed, in some sectors it is very easy to receive blackmail by the customer, in which they often block payments on the basis of goods not received or defective receipt or even empty packages. PayPal Blocks the money and almost always gives the end customer reason to .

Commissions even if the transaction is canceled.

1a- PayPal Pro

PayPal Pro is the big brother of PayPal, uses the same system and base, but uses some advantages such as a more advanced front end interface, with PayPal pro you can avoid transferring your customers to ebay for payment, then carry out the transaction directly on the eCommerce. It also has the advantage of multi-user, useful in companies where there are more people who can access the system.

Unfortunately, even in this case, to obtain the commission of the group reached, it must be asked to achieve and is valid from the following month.

2- Stripe

The Stripe payment method quickly became the real alternative to PayPal created by Peter Thiel and Elon Musk ex of PayPal; they took the PyPal regimes and defects to create Stripe.

Advantages :

Much easier to integrate as the APIs are simpler and allow greater customization, payment interface much more versatile and customizable, intuitive backend and convenient to use, payments directly on e-Commerce with interface integrated in the site, control card security for reduced fraud, balance between customer and merchant attention, no fraud commission or transaction reversal. Excellent Support. Very high number of accepted payment systems including Sofort, Sepa, GiroPay, less clicks than paypal as they do not ask for registration, the user cannot request the provider’s funds lock.

Disadvantages:

Non-phased rates, rate canceled only if the customer’s bank closes the dispute and your favor, otherwise very high commissions, it takes 7 days to credit the funds to the current account after the transfer from Stripe to the bank account.

  • Braintree

Braintree is a very versatile payment system , it also integrates payments with PayPal, has a back-end system that is very easy to use, advanced statistics, many accepted payment systems, including android payment, apple payment , Venmo and Bitcoin.

Advantages :

Interface well done both on the backend side and on the frontend side, payments directly on the site. Integration with many payment methods, including many Amex credit cards included,. Assistance via ticket, chat, telephone.

Disadvantages :

Accreditation payments after a non-immediate request, it is not possible to customize the frontend, fraud protection not exactly the best.

  • Skirill

ex  Moneybookers ,  Skirill is an excellent online payment system and has a good interface both on the user side and admin, widely used in the gambling world for its shopping experience and for the possibility of being used as a payment method through a link, it is possible for example requesting payment of an eCommerce invoice or order to be paid by sending a link.

Advantages :

Possibility to request payment balance by sending links via e-mail marketing, interface translated into many languages, very simple and intuitive user interface, well done backend.

Disadvantages :

Very complex commission system, availability on the Indian current account in over 7 days from the request

  • MultiSafePay

The MultiSafePay payment method is a very large and versatile system, it has excellent possibilities of integration and modification thanks to its API, it has the possibility of sending mails with payment links to which to link the payment of the ecommerce order, the panel is very versatile and allows for example the export of transactions that can be imported or integrated with the management system.

The thing I really like is a sort of abandoned cart recovery after the payment with MultiSafePay was not successful, the system sends an email with a direct link to the customized cart to complete the payment, (from a test we performed, unofficial, the recovery is about 7% of orders).

Ideal therefore who does CrossBorder that is the companies that want to sell to the foreign countries, without tightening accodi with tens of partners one of it counts several tens.

Advantages :

Advanced payment system, with multi-use, with the possibility of mute accounts. Excellent interface, great customization of appearance and additions also thanks to the API system.

Possibility to create many payment forms to give the name of the service, such as PayPal, Credit Card, Mister Cash, Giropay, Sofort, etc., to BankTransfer to Sofort

Excellent anti-fraud security system, for those transactions that the system considers suspicious, freezes them, and gives the possibility to merchant to investigate the buyer and then manually authorize the transaction, eliminates several headaches.

Disadvantages 

Even if the assistance is rather rapid, with answers in maximum 30 minutes h24, they answer only via ticket and the support to today is only in English language, they will open in India but it is not known when.

  • Google Wallet

Google Wallet was born with great intentions, from my point of view well done and above all economic, as it is free. But unfortunately it has big limits for deciding to use it, for example it only works for the US and UK markets. NOn all commercial activities I can use it, and it allows exchanges only with those who have registered the credit card on the system, the principle is to understand each other is that of PayPal Me, so the change of money, between users, the same payment method has implemented it facebook but we have not tested it.

Advantages :

Very fast zero cost to integrate and very easy to understand interface

Disadvantages :

Active only for US and UK users, it has a lot of limitations, it only works between users registered with google wallet

7- Amazon Payments

the Amazon Pay payment system  is a payment method that is very slowly seeing light, in India it is still little used while the other European nations and without even saying the United States, implement it the most consistent moos.

There are plugins for Woocommerce, Magento, Prestashop, OpenCart, Shopify and ZenCart, almost all the most important Open Source e-Commerce platforms. In essence, the customer who decides to pay using Amazon Pay tells Amazon to pay the supplier on his own, and then amazon will access the funds or credit card registered on the Amazon website.

Rates not really low, even if aligned with PayPal

Advantages : 

From tests carried out by us we have noticed an increase in credibility, thanks to the Amazon payment sticker, even if we then noticed many dropouts before authorization and switch to other payments, probably due to the idea that the merchant then has the data of the credit card.

Disadvantages :

Terrible interface, high costs, signing of the amazon contract on the returned policies, so for each sneeze of the end customer the merchant will have to lower his head. Money recovery in percentages reduced only twice a month

8- Sofort

Sofort is a beautiful payment system that provides authorizations directly from the bank current accounts of half of Europe, it is in a few words an immediate transfer. In India I honestly haven’t seen it applied yet, and in those customers where we have entered it, no India transactions have been made, but it is widely used in Germany, England and France, so great for those who sell in these countries.

Advantages :

The transfer is immediate, so the merchant will have the money directly on the account as for a credit card, without having to wait two days for verification. Another not inconsiderable advantage is the check of the payments received; in this case it is automatic while with the classic SEPA transfers it is necessary to carry out manual control and authorization.

Disadvantages :

Not known in India, users who do not know this system will feel uncomfortable having to log in with their home banking account on the SOFORT screen.

9- Payza, also known as AlertPay

Payza is another online payment system that has nothing more and nothing less than many other payment methods; I talk about it because some customers had it and so I got to know it.

Almost unknown in India but quite used in the United States and much more in England, until a few years ago it was called AlertPay

BitCoins are also accepted as a payment method.

Advantages :

Very easy to integrate, versatile bike and backend panel very intuitive and well done nothing to see with the inconvenient Paypal. It accepts various payment methods such as money transfer between one account and another of Payza, payPal, BitCoin, credit cards

Disadvantages :

Almost unknown in India, one of the many systems, assistance only in English and only via ticket with waiting times of about one working day.

10- Payoneer

Payoneer is a payment system widely used in affiliations, many systems use this method such as, Amazon, AirBnB, Cdiscount, Rakuten, Fiverr, GAffiliate, etc.

For the big costs I have always advised against my customers as a payment method in the ecommerce, but many bloggers who make affiliations use it, so in case of affiliate marketing strategy, it is worth adding it

Advantages :

The payment method most used in affiliations, payoneer itself has an affiliate program, good backend interface

Disadvantages :

expensive transactions, they make every move pay, they even charge the failed transfers. It is not convenient to use it as a payment method for merchandise transactions in the shop or even for returns.

11- Paymate

PayMate is a great payment tool online and physical, very used in the Australia and New Zealand market, in the rest of the world it is almost unknown, I talk about it because I used it and liked it a lot.

Use the same concept as the various Braintree, PayPal, etc. so it allows transactions to those who have an account and a wallet, but also accepts various types of payments.

Advantages :

Accepts credit cards and systems used in Oceania, sale possibilities all over the world, possibility of using physical pos, excellent anti-fraud system, controlling their transactions and those approved are guaranteed.

Disadvantages :

Not known outside Oceania

12 – ClickandBuy

ClickandBuy is a payment method very similar to PayPal and the other wallet payment methods, I don’t particularly appreciate it, a client who worked with the German market had it.

Advantages :

Very attentive to customer privacy, excellent anti-fraud system, not the best visas.

Disadvantages :

High costs, assistance is only answered via ticket and takes about 2 days in the answers. Almost unknown outside Germany.

13- Hipay

Hipay is a  very interesting online payment system , as it is almost unknown in India, however, I recommend giving it a look. For micro payments, its HipayMobile version is far ahead of those who are investing like Facebook, Google and PayPal.

It allows payment through SMS or telephone calls, the user who wants to make a payment of a few € can call a phone number or send a text message and get a code he will use for payment.

Very versatile and well made.

Hipay is integrated around 200 payment methods present all over the world, it aggregates in it many methods, I have known it thanks to ePrice, I consider it more an aggregation of payments than a single system.

Advantages :

The HipayMobile version is an excellent system for micro payments, easy integration, and well done backend.

Hipay has a very wide range of integrated payment systems, ideal for those who sell all over the world, an excellent system for those who have a market place , an excellent fraud control system, one of the best proven, a quality service of excellent transactions and puts in safety the merchants.

Disadvantages :

Practically unknown in India, the price table is somewhat complex

14- GestPay

Gestapy is a multi-channel bank payment system that allows you to accept payments from all over the world with many payment methods such as PayPal, Sofort, practically all available credit cards and much more.

Manages recurring payments

Advantages :

Excellent interface, payment system directly on the site and with customizable graphics, quick assistance in responding, but also depends on the type of contract, possibility of payment also via call center

Disadvantages:

High rates, expensive base contract and with few possibilities. More floors with different rates and options, a really bad backend to avoid denying Indian gatways.

C- Other electronic payment systems for e-commerce

Other payment systems include COD, although in truth it is a shipping service, the classic banking account (or sepa) Poste Pay top-ups and loans

It must be said that the mark is typical of the Indian market quite wary of people, while payments like the transfer and the loan are used only for some types of amounts, for the poste pay there is a lot to say.

  • Cash on delivery

  • The method of payment by means of cash on delivery or payment is widely used in India, even if there is a counter trend also thanks to market places  such as spartoo, amazon ibs etc ..

Marking is a way to make customers confident of delivery, but it brings with it many problems for the merchant:

  • Cost of the mark,
  • No customer withdrawals,
  • Storage costs,
  • Costs for returns to the merchant,
  • Long time for credit to the current account of the money.

So the mark is a balance between security offered to the customer and problems that the merchant must bear, often it is not worth having it as a payment method, because the margins are eroded by costs and problems, not least for those who do drop shipping, is found in stock goods that often will not be able to resell.

Evaluate whether to activate it or not, if you do, maybe avoid doing it for products over a certain cost or on which you have little marginality.

Defining a cost of cash on delivery is impossible because a lot depends on the agreement taken with the courier, often speaking of 3 or 4 € in some cases of a percentage on the collection. Try to tick off the best possible agreement, but above all pay attention to additional clauses such as, for example, the average storage costs around € 10.

  • Transfer

  • The advance bank transfer is the preferred method by merchants because it does not have a real collection cost, even if in reality it brings with it a work commitment, every day you have to check the arrivals, match them with the orders awaiting payment, make a matching and in manual way to authorize the shipment of the product. These operations take at least 5 minutes if not 10 for one order per day may not be a problem, but it becomes burdensome when orders become many for 20 orders means losing at least 2-3 hours.

There are systems like Sofort that improve these problems by reducing waiting times and above all by avoiding control work in the following days.

  • PostePay

  • I hate PostePay in a visceral way. true that for end customers it is a nice way to have a rechargeable card and in case of theft the damage can be minimal.
  • But the stakes are the whirlwind of incompetence, I don’t enter into the costs, which are only 1 € for the withdrawal of the money every 500 € daily maximums, so if you clone the card you can’t even withdraw all the damn to avoid the theft.
  • Guarantees for merchant zero, scams are many, and the merchant loses money without any guarantee, not by chance they are used for online purchases of electronics.
  • The whole thing is due to a series of concatenated facts, ebay was becoming the biggest negocator of scammers and for many Truffaldini customers using PayPal in which they had to pay commissions and could have blocked funds, the choice to push for Posteay refills is was the next step.
  • Unfortunately in mid-2000 there was a very high number of scams from both merchant’s and buyers and the common denominator was the poste pay since it gave no guarantees to anyone.
  • I strongly advise you against accepting payments on postal pay top-ups, but allow your credit card circuit to accept the post pay as a credit card.
  • Financing

  • As a payment method, the financing is mainly used in goods whose cost exceeds € 500 600, which is therefore widely used in sports equipment (the sector from which I come with my first e-Commerce), white (in the jargon are the appliances).
  • There is a tendency that I experienced over time, those who open a loan are not then led to make returns, while it often happens to me that I had to withdraw cash paid treadmills. A real annoyance, once I understood that the financing also gave me this advantage, I started using it as an acquisition system, therefore offering zero-interest loans.
  • With Findomestic I was able to pay 5% commission for zero rate loans (to the customer, but someone has to pay the interest) for 10 installments.

This ploy gave me a big increase in sales and a very low, close to zero, return requests.

I advise you to hear the companies mentioned and get you a quote; it could be a good idea to implement the financing as a payment method in your company.

Conclusion

There are plenty of payment methods, the range of offers is very wide, the first choice you need to make is related to commission costs, the second is relative to the market, because proposing an unknown payment in India is useless, in the same way proposing in the united the mark if you send from India is impossible, or too burdensome.

Another choice should be made based on the problems you may encounter, for example due to the lack of assistance or as per Postepay for all safety-related problems.

 

Above all, always experiment, if you have a doubt: Experiment.

 

 

 

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