An online payment system is an Internet-based method of processing economic transactions. It allows a vendor to simply accept payments over the online or over other Internet connections, like direct database connections between retail stores and their suppliers--a common method of maintaining just-in-time inventories. Online payment systems greatly expand the reach of a business and its ability to form sales.
The Facts
Online payment systems typically are travel by third-party corporations, like PayPal, Google or Click2Pay. These companies make a profit by taking alittle percentage of each transaction, or by signing contracts with institutions that require to form an outsized number of transactions.
Significance
A large Internet storefront, like Amazon.com, couldn't exist without the power to require online payments. Online payment systems have leveled the playing field between large and little companies, as any of them can accept an equivalent payment methods once they check in with third-party payment processors.
Geography
The reach of online payment is as large because the Internet, but many payment methods are restricted by national law or by the unwillingness of some vendors and consumers to figure with residents of nations where national regulation is lax. for instance , Nigeria is infamous for having no enforceable fraud protection, which leads many vendors to disallow transactions originating from that country.
Size
According to the us Bureau of the Census , total American e-commerce in 2008 was $3.7 trillion. This was a 12.1 percent increase over 2007's numbers, and represented 16.5 percent of the American economy.
Considerations
There are only a few businesses that can't enjoy participating in a web payment system. However, because these transactions are through third-party vendors, no business should rely entirely on one supplier for online transactions. Diversification within the use of online payment systems is vital to making sure that a business's income isn't interrupted by problems with one vendor.
The Facts
Online payment systems typically are travel by third-party corporations, like PayPal, Google or Click2Pay. These companies make a profit by taking alittle percentage of each transaction, or by signing contracts with institutions that require to form an outsized number of transactions.
Significance
A large Internet storefront, like Amazon.com, couldn't exist without the power to require online payments. Online payment systems have leveled the playing field between large and little companies, as any of them can accept an equivalent payment methods once they check in with third-party payment processors.
Geography
The reach of online payment is as large because the Internet, but many payment methods are restricted by national law or by the unwillingness of some vendors and consumers to figure with residents of nations where national regulation is lax. for instance , Nigeria is infamous for having no enforceable fraud protection, which leads many vendors to disallow transactions originating from that country.
Size
According to the us Bureau of the Census , total American e-commerce in 2008 was $3.7 trillion. This was a 12.1 percent increase over 2007's numbers, and represented 16.5 percent of the American economy.
Considerations
There are only a few businesses that can't enjoy participating in a web payment system. However, because these transactions are through third-party vendors, no business should rely entirely on one supplier for online transactions. Diversification within the use of online payment systems is vital to making sure that a business's income isn't interrupted by problems with one vendor.
