The Basics of Internet Business essay
In modern e-commerce environment, the use of different online payment systems is quite common. However, there are both advantages and disadvantages of such payment systems. It is possible to identify the following reasons why Bonnie should offer additional online payment options to her online customers:
- Many customers are used to online payments using the most widespread payment processing systems – Amazon Checkout, Google Checkout or PayPal. PayPal is one of the most trusted payment providers and PayPal payments are accepted worldwide. The customers who frequently use these systems will be more likely to purchase goods in Bonnie’s online store due to convenience.
- The charges for transactions in such online payment systems are significantly lower compared to the charges that Bonnie currently pays to CSP (Schneider, 2014), so her goods will be more competitive and Bonnie will receive higher profits.
- Payment processing in key online payment processing systems is often seamless and it is easy to see whether the payment was processed or not. Therefore, Bonnie can process payments faster and ship goods faster.
At the same time, there are reasons why Bonnie should not use such online payment processing services:
- Bonnie will have additional responsibility – she will have to managing client questions and requests related to these payment services, and will have to resolve customer disputes in these processing systems if there emerge such complaints.
- There are potential security issues related to establishing the connection between Bonnie’s website and external payment processing systems. Bonnie might have to introduce additional security measures; in particular, she should warn her clients about spoofing and general security measures related to online payments (Meng, 2012).
- Terms of contract with external payment service providers might require using the system for a particular time (or using at least a specified number of transactions), so if Bonnie decides to stop using a particular system, she might be unable to do it before the contract expires.
Do you like this essay?
Our writers can write a paper like this for you!
(No Ratings Yet)
Loading...