There are many different payment options available to us on the Internet. Some of them are definitely criticized because »Buy now - pay later« can serve as a gateway into debt if care is not taken. Other payment options are already very familiar to most buyers and it is hard to imagine online business without them. This article explains what these are and how the individual payment methods are used.
Credit card
The credit card is a classic means of payment on the Internet and is now one of the most important, even in a roundabout way. But why is that?
- early days – initially, the credit card was simply the main means of buying products on the internet. At the beginning of online shopping, there were no instant transfers, and there were no fast bank transfers either. The credit card was the only means of payment that told the seller that the payment had been made so that the goods could be shipped.
- today – in general, the credit card is just one means of payment among many. At least almost, because a number of payment services and mobile providers require a credit card to be deposited in order to pay via the service. To this day, Google Pay and Apple Pay sometimes do not work without a credit card as a stored means of payment.
- Scope – apart from the usual credit card, there are various prepaid models. Sometimes there are single tickets that are bought with a credit of the equivalent value. Others are linked to an independent bank account to which funds can be transferred over and over again. Prepaid cards are very popular online, because if the access data is stolen, the fraudster can at best steal the credit, but not collect large amounts from the account.
direct debit and bank transfer
Direct debit is still available online, but many shops that are only very well known to them use it. In unfamiliar shops or with unfamiliar services, most online users tend to use alternatives Payment Methods return. And the transfer? It, too, is no longer the one that was once filled out on a form:
- Normal transfer – Hardly anyone chooses this path anymore. For good reason, because not only does the IBAN have to be entered, the transfer also offers no protection for the buyer. At best, transfers can be retrieved within the first five minutes after they have been submitted – this is usually not possible at all.
- New transfers – modern payment service providers have proven themselves. In practice, the use of Klarna and Co. is nothing more than a transfer, only this is direct and there is customer protection. So the money can be recovered if the goods never arrive.
- Benefits – the new variant offers shops and buyers advantages. Payment service providers take over the processing and tell the seller directly that the money has been transferred. The order is thus processed directly and not only when the receipt of money has actually been posted.
Online Payment Provider
There are many models in this regard. A number of them overlap with direct debits and transfers as well as with mobile payment providers. But which payment providers stand out?
- PayPal - Purchases, donations, loans, installment payments - PayPal now offers almost everything. The basis is that the PayPal account is linked to the bank account or credit card. It is already possible to shop, but it is also possible to receive money. Hardly any provider does without the integration of PayPal.
- Klarna - it started with instant transfers, today purchases on account, buy and pay later and also credit via Klarna are possible. The service is not linked to the bank account, although it does link to it briefly when a payment is made. Like PayPal, Klarna offers customers customer protection and very simple payment options.
- Amazon Pay - the service is sometimes referred to as a real payment service, but it is not. Amazon Pay is a payment method that customers can use to pay in third-party shops via their Amazon account if the retailer accepts the service. Amazon now also offers buyer protection.
- Skrill and Co. – with Skrill, Trustly and other providers, there are far more payment providers on the market. Some of them are purely for the payment of online products, others have long provided their own credit cards or allowed cash withdrawals. Depending on the service, it is also possible to receive money. However, most services are one-way – the money goes from the buyer to the shop.
Mobile Payment
These payment providers are almost always present, although they are highly device and account dependent:
- Google Pay - about the Smartphone can with Google Pay be paid if the pay account has been linked to a credit card or bank account. Google Pay is now recognized almost everywhere where mobile payments can be made via NFC.
- Apple Pay – Ultimately, this is the same service as described above, only it is tied to Apple devices. Payment is also possible here in local shops, but also online.
- Samsung Pay – This is the equivalent of Apple Pay and can only be used on Samsung devices. In addition to Apple and Samsung, manufacturers of fitness watches are now also issuing their own payment services.
But the usual banks have not remained idle either. Most banks and savings banks already offer their own mobile payment services. They come to the smartphone in the form of an app and are connected to the bank account. Now one will virtual debit card created and saved. Once this is done and the service is selected as the main payment source, payment can be made via the smartphone. The handling is no different than paying with the usual EC card.
Conclusion – the right method for every occasion
Surely most internet users have their preferred payment method. However, many of them resort to alternatives from time to time. This applies in particular if you want to shop in a rather unknown shop and you want a little more security. And the new payment methods are also proving to be very popular on the go. Many people almost automatically grab their smartphones at the supermarket checkout and pay there via Google, Apple or their own banking app. Prepaid credit cards are sometimes used when traveling or online, because they offer the special security that more than the credit can never be spent.
