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Online Payment – Save Time and Money


Our monthly expenses by making payments of various bills such as rent, lights, internet or other payments which take a long time waiting in long queues today we can save this time by making online payments in browsers or applications smartphone.
Technology now enables us to save time and money by making online payments through smartphone applications.

Collecting money through the Internet means accepting online payment.

Online payments, especially recurring online payments, form a fundamental part of many businesses’ revenue streams. However, each online payment method has distinct advantages and disadvantages.

The way you accept payment from your customers impacts not only your revenue, but the growth of your business.

What are online payments?

Online payments are payments that are initiated over the internet for goods or services purchased either online or offline. 

An online payment can be simply defined as the exchange of money online, or the payment for goods or services over the internet. In effect, it’s just a means of processing transactions electronically, with the use of the internet to facilitate direct database connection between the part that is selling the product and the part that is buying it. This involves processing data from a payment method chosen by the buyer, usually a credit or debit card or a checking account.

Online payment refers to money that is exchanged electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. When you collect a payment over the internet, you are accepting an online payment. Online payment usually is the transaction that results in transfer of monetary funds from the customer bank or credit card account to your bank account. 

Types of online payments

  • Credit cards: This is a payment issued from a financial institution that lends money to the cardholder, which allows them to purchase products and services online. Using credit cards for purchases is a popular type of online payment because the buyer usually has little to no liability for fraudulent charges, and most sellers accept this type of payment.
  • Debit cards: Using debit cards (sometimes referred to as check cards or bank cards) for online purchases deducts the price directly from the user’s bank account. Similar to credit cards, the purchaser is often protected from unauthorized charges, and debit cards are widely accepted online.
  • Third-party payment services: These online and mobile services help facilitate the sending and receiving of payments online between buyer and seller. Once a bank account is attached to a third-party payment service, transactions can often be made via mobile phones, tablets, smartwatches, and within apps.
  • Electronic checks: This form of online payment deducts cash from a checking account, which eliminates the need for the buyer to write a paper check or the seller to deposit it. Electronic checks require the payer’s name, checking account routing, and account number, as well as the amount of the payment.
  • Mobile payments: Payment acceptance was no exception for mobile penetration. This digital payment solution offers a quick solution for customers. To set up a mobile payment method, the customer just has to download software and link it to the credit card.
  • Bank transfers: A bank transfer is similar to the debit card method because it transfers funds directly from one bank account to another. The difference with a bank transfer is that a physical debit card is not needed, providing an even faster and more secure form of payment.

What Is Online Bill Pay?

Online bill pay is a digital banking or payment service that lets you pay bills over the web from a bank account often at no extra cost. It can simplify your finances by eliminating the need to write out checks or count and distribute paper currency.

It takes a few minutes to set up your online bill payment, but once it’s set, you don’t have to worry about missing your payments. Understanding what online bill pay offers and how it works can help streamline your cash flow and simplify your life.

Key Takeaways

  • Online bill pay is a convenient service offered by many banks, credit unions, and service providers, allowing you to set up automatic electronic payments for your bills.
  • Payments can be set up for one-time, future, or automatic recurring transactions.
  • To use this service, you will need to create an online account with your bank or service provider and provide your payment information.
  • Always be sure you have enough money in your account to cover any payments you make online.

Online payments are used by buyers of goods and services, and the sellers of those goods and services. Several steps occur with the funds when they are transferred and received, especially between the two parties, that often require different types of software to successfully facilitate the transaction. The typical steps are below:

  • Online purchase is made: A customer (buyer) provides the necessary information (debit or credit card, checking account information, etc.) to pay for goods or services. This data is then sent to a payment processing software or payment gateway.
  • Information is encrypted: The payment gateway encrypts the payment details, such as the customer’s name, address, and bank account info, which provides a level of security to make it more difficult for this info to be stolen.
  • Details are verified: After the transaction data is encrypted, the information is sent to a payment processor to ensure that the transaction is valid. Once the transfer is verified, it sends the info to the buyer’s and seller’s banks.
  • Funds are approved: Assuming there are no red flags from the payment gateway or processor, the banks authorize the transaction. There are, however, several reasons as to why a transaction might not be approved by either bank:
    • Insufficient funds
    • Frozen account status
    • Invalid credit card number or expiration date
    • Transaction limits
    • The card has been reported lost or stolen
    • The address does not match the card
    • Invalid Card Code Verification (CCV)
  • Funds are requested: After the funds and corresponding transfer are approved, the payment processor requests the funds to be sent from the buyer’s source of funds to the seller’s bank account.
  • The seller receives funds: The transfer of funds is completed and the purchase price has been sent from buyer to seller.

Benefits of using online payments

Online payments provide both the buyer and seller with many benefits, such as security, efficiency, convenience, and contactless options.

  • Security: Online payment options use encryption to protect consumer information and ensure data and funds are transferred securely from buyers to sellers. These safety protocols also decrease the chance of personal information being stolen.
  • Efficiency: Payments made online are efficient because they are fast, sometimes instantaneous, and don’t have any constraints, such as distance, time, or location.
  • Convenience: Vendors who accept online payments are providing a convenience that allows their customers to easily pay for goods or services, which improves the buying experience. If the vendor accepts credit card payments, the customer can buy goods on credit and pay later. Payments can also be made from anywhere at any time, eliminating the need to go to a bank or another financial institution.
  • Contactless option: Contactless online payments allow buyers to pay for items by simply holding a smart device near a terminal that processes the transaction and transfers the funds to the seller via the internet. Customers can also make payments using QR codes or one-time passwords (OTP), both of which eliminate the need for human touch.

The companies that offer the opportunity to make online payment of bills in Albania are:

  • Mobile companies.
  • Central Bank and those of the 2nd level.

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