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In 2001, 78% of all bills were paid by paper-based methods (example, paper check), and 22% are made electronically. By 2005, 45% growth for payment of bills made electronically For online B2C merchants, the implications of these trends are straightforward. In online B2C, most of the online customer pay using credit card.
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It is hard to run an online business without supporting credit card payments. It is also important to support payments by debit card.
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Using cash
Most common types of payment Cash is exchanged directly for product at physical retailers. Cash is not redeemable for online purchases. Paying for product is as easy as counting out that much money in cash and handing it to the cashier. If you give to much money, the retailer will give you back the change or the difference between what you paid and the total cost of the product.
When check is accepted as payment, the recipients bank collects the value of the check after presenting it to the bank on which it is drawn. Check can be returned for insufficient funds, the bank may not make the funds available to the recipient until the day a returned check would have been received. (lag of two days for local check, five days for nonlocal check)
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Mostly payment using check is usually at physical store. Personal check
Personal check are ordered along with current account. There are essentially paper forms you fill out and give to the physical retailers. The retailers turn in the check to their bank, the bank processes the transaction, and few days later the money is deducted from your current account. Check is timely. Cannot be used to make online purchase.
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If check is lost or stolen, the person who wrote the check can stop payment on it by notifying the bank that holds the current account. Unlike counterfeit currency, the validity of a check cannot be determined by usual examination. Check may be worthless if it is counterfeit or the check writer does have sufficient funds. Customer have to pay fee to have a certified check issued.
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How to use personal check
Fill out the check. Put the date, the recipients name or the retailer, the amount of the check, and signature. Give the check to the retailer, and retailer will deposit it at the bank, in few days, the funds will be withdrawn for your current account.
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The Visa, MasterCard and American Express do not issue credit or debit card directly. They comprise thousands of bank worldwide. This banks pay membership fees to the associations. Retail credit cards usually have lower credit limits and higher interest rates than bank credit cards.
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Merchant account
A bank account that allows companies to process credit card payments and receives funds from those transactions.
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Questions??
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