The Different Types Of Payment Methods And How To Choose

The Different Types Of Payment Methods And How To Choose

Things have changed a lot in the past couple of years when it comes to payment methods. Luckily, for the better. Nowadays, people have a plethora of options at their disposal, which makes the entire payment process much simpler and faster.

Now, when you have so many different alternatives, it seems like choosing the best option may be a bit intimidating and confusing at first. You get a feeling like your head is getting in a spin and you’re not quite sure what to do.

Don’t worry. Most people experience this type of confusion. That’s precisely why this article today will discuss this topic to help you understand better every single payment method that is presented. Stay tuned to get more information!

Debit Cards

A majority of people these days use debit cards and it is considered one of the most popular payment options in the world, intended for both offline and online purchases. What’s so good about it?

Definitely one of the biggest advantages of these types of cards is the additional layer of security when you’re completing a payment. Namely, every consumer has to input their own personalized PIN code, plus each payment is obligated to go through a card network like Mastercard or Visa.

All of this makes sure that nothing bad is going to happen during your purchase and that it comes from a verified bank account. Usually, accepting these types of payments requires utilizing a card (POS) machine.

Pay By Link

Making payments is supposed to be convenient, safe, and fast. That’s precisely why Payments via Pay by Link have become very popular in recent years. So what do they represent? Namely, they can be defined as a payment method where a person can file a request for online payment which is later shared and generated by the merchant to the shopper.

Generally speaking, accepting payments through link sharing is extremely practical, fast, and easy and something that both consumers and merchants love. Furthermore, the payment collection can be completed through either a QR code or payment link.

Credit Cards

It is safe to say that credit cards are as equally as popular as debit cards. The only difference between these two is the fact that you are purchasing something by using the credit that’s on your card, that you will pay back at a certain point.

Every person is allowed to have a credit limit. The amount is not the same for everybody. If you decide to start employing this type of card, it means that you are accepting to pay back the balance along with interest.

The most popular credit card issuers in the world are American Express, Visa, and Mastercard. There are a lot of ways you can utilize your card. You can shop online by employing a chip and PIN, you can do it over the phone or contactless.

Generally speaking, credit cards are great for people who currently do not have real cash by their side, however, it still doesn’t mean that you should be careless. On the contrary. Make sure you are not spending more money than you’re supposed to, otherwise, you won’t be able to repay it.

Bank Transfer

With this type of payment method, people are able to complete their transactions by moving cash from their bank straight to their bank account or settlement account. According to statistics, this is the most popular payment method in Western Europe, especially in the Netherlands.

Furthermore, a bank transfer is also extremely popular for the real-time peer-to-peer type of payments, as well as for a lot of B2B transactions.

Mobile Payments

What does this represent? It refers to the payment methods that utilize your cell phone. These normally involve contactless payments, in-person or remote. The most popular ones involve mobile wallets, payment links, and QR codes.

When it comes to payment methods, this is one of the most recent ones. It was blasted off approximately ten years ago and it has quickly become very popular among consumers, with Apple Pay and Google boasting more than 300 million users in total.

What’s so good about it? The fact that it’s very convenient is something that attracts shoppers, plus let’s not forget the fact that it’s also very safer in comparison to other payment methods. Besides payment links that were already mentioned above, QR codes are also very popular when it comes to mobile payment solutions.

Those days where only money was utilized for accepting payments are long gone. As you can see, today people are showered with endless payment methods. Still, not every option is for everyone, hence, make sure to carefully go through this guideline to see which one suits you best.

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