Online Payment Systems Are Too Expensive

As online payment systems and forms of internet currency become more and more popular, and a bigger variety of users start taking advantage of their services, some of the more well-established names in the industry are very likely to start charging people for transactions. Indeed some companies are already engaging in this practice. This leaves many people asking the question, are online payment systems too expensive?

Many people agree that they are. While online currency programs were designed for ease-of-use and as a secure, and reliable means of transferring money from one person to another, they have now became prime targets for online fraud and illegal internet hacking activities. This has caused many of the big names in the industry to beef up their network security like never before – and this can cost them millions of dollars in the end. This extra expense is of course passed on down to you and me, the consumers, in the form of fees and charges for using services that we may already be enjoying right now for free.

This issue has caused quite the uproar in the internet community, and has regular users of online payment websites concerned. While users do not want to take the risk of switching to a smaller online payment system that may be less secure, they will have no choice but to pay any necessary fees to avoid cancellation of their accounts – many of which are several years old. Because of this, many people are rather angry at the more popular, well-established online payment companies; and rightfully so.

It is not good practice for a company to start charging money for services that they were once giving to their customers completely free of charge, but in this case, there simply is no choice. Not only are companies forced to take extra security measures to counteract any potential hackers, the ever growing popularity of some of these online payment websites is a problem too – some are attracting too many customers too fast. This is a good problem to have for a business, as it means increased revenue. However, these companies are now being forced to upgrade and expand their internet servers, and sometimes even purchase new ones. These can be quite costly not only to purchase outright, but to maintain for any length of time, as well. Again, you can be sure that this extra cost will be passed right down the line to us consumers – and there isn’t much we can do about it.

The average costs of everything have been on the rise lately, and internet service costs are no different. Experts agree that the price of these services will continue to rise at a steady pace, and indeed we may find ourselves paying extra for services that we once used for free. As long as you understand that these extra fees are necessary for the companies to ensure that your information is kept safe behind proper internet security, however, you can sleep a little bit better at night. Nobody likes paying extra fees, but in this case the added cost is really for your added protection.

Starting From EScratch – Top 6 Questions About Accepting Online Payments

For many small businesses, the prospect of adding a new way to collect payments, with a possibly unfamiliar technology, can seem intimidating. Most small businesses want to offer their customers more flexible payment types, but they are wary of the costs, security, and requirements to set up such customer conveniences.

The bottom line is, small businesses owners have questions, and aren’t sure who to ask. Based on what we’ve learned from our customers, here are the Top 6 questions and concerns preventing businesses from setting up online payments:

“We are too small of a company.” As much as it may seem, the rule is not be big or go home. By incorporating online payment processing functionality, such as email invoicing and recurring billing, at a lower cost than legacy billing processes, small businesses can actually leverage their collection process and compete with larger businesses in some facets.
“Our customers won’t use online payments enough to justify the monthly fees. On the contrary, consumers are driving the creation and adoption of such billing services. Over 50% of all US households pay at least one monthly bill online and wish more businesses offered the convenience.* Even non-profits like churches and fundraising organizations are adopting online payments, and realizing increased donations and sales.
“Do we need to have a website?” No. Some online payment processing providers also provide a securely hosted online payment page that is even customizable to look like your business.
“Do we need a tech person to setup and handle the system?” No. As the technology in payment processing advances, setting up online payments is becoming easier and easier to do. Not only do you not need a website, but you don’t need any technology experience. When inquiring with a company, be sure to ask about the setup process.
“Are online payments secure?” Yes. Almost 85% of identity theft cases are due to offline transactions because consumers who pay bills electronically expose their information to fewer people. Additionally, using risk management features in a PCI compliant online payment solution, including adjustable fraud settings and user-based processing limits, protect both the merchant and customer.
“I don’t know if it will be advantageous for me to set up online payment processing. Most of our customers experience faster collection cycles and increased sales or donations after setting up online payment processing. In addition, they experience time and cost savings by drastically reducing the amount of paper invoices and checks they have to output and receive. I don’t know of a business that wouldn’t want to discover a service that enables it to follow the old mantra to “cut costs and increase efficiency.”

Are Online Merchant Services Worth The Hefty Price Tag?

An online merchant service is a service that enables you to make payments or accept payments online for your business. While it can be extremely beneficial to your business to work with a merchant service, the total bill can be pricey to set one up. It is critical that you do extensive research to determine the exact price for getting an online merchant service, because many times there are hidden costs.

Online merchant services work through merchant accounts online, which are provided through a bank. In turn, it is the bank that allows you to make or receive credit card payments via internet. As you may have guessed, this is beneficial to your business if you have a merchant account because it allows your visitors and customers to easily make a payment.

On top of that, it is convenient for you because you receive the payment much quicker. A merchant service can also set up quick thank you responses and related products that they can shop from after making their purpose. The main benefit to having an online merchant service is that you have complete control over the system for processing the payment.

You have to realize that we still live in a world where there are online thefts and identity fraud occurring more than you would like to think. Because of this, this is one downside to setting up a merchant service. Many people are still not willing to give their credit card over the internet for the fear of identity theft. While it won’t change everyone’s minds, it can be helpful to post a note stating that your site is 100% safe from identity theft.

A disadvantage for you to consider for merchant services is the costs incurred to have an online merchant service. There are various merchant services that charge fees from each provider that assists you in your development of the account. You also have to take into consideration other charges that will pile up on you such as application fees, set-up fees and yearly membership charges.

Sounds like a lot, right? What is troubling is that there are even more charges that you potentially could deal with. Other charges you may encounter include monthly statement charges and gateway access fees. So is it even worth it to pay for all these fees just to make it the payment process more convenient for your customers?

That is for you to decide. It can be expensive, but the convenience and the ability to accept a multitude of different credit cards welcome diversity and allow you to be flexible. This in turn has the potential to generate a higher traffic volume and create more follow-up sells. At the end of the day it’s your call, do you want to pay and hope it will pay off, or settle and keep things the way they are?