Have you ever tried ordering from a product from a website without an online payment system? If you do, you may recall the inconvenience of getting in touch with the provider to place an order. You may have incurred additional cost on your phone bill, calling long distance to the provider. You may have to exchange e-mails many times to place, clarify, and transact the order. You may have pound your fingers to the bone chatting with the supplier in a chat room to successfully process the transaction.

If you are running an online business, it is strongly recommended that you embed an online payment system in your website such as Paypal. An online payment system is important in e-commerce—it allows money transfers and payments to be made through the Internet. Thus, it serves as a convenient alternative to conventional paper methods such as cash, money orders, and cheques. A viewer’s account can be funded with a credit card or with an electronic debit from a bank account.

Online electronic payments can bring great benefits to your business. Here are some of the advantages.

1. You respond to present customer payment preferences. Nowadays, people expect to be able to pay through debit or credit card. Many consider bringing cash or cheques a hassle—they could get robbed, they have to convert their money to a certain currency, etc.

2. You encourage customers to purchase impulsively. Since they are able to purchase conveniently through debit or credit card, they can simply click and order the product they are interested in even if they do not have cash with them.

3. You minimize lost sales opportunities. Without an online payment system, a customer may get tired of the hassle getting the transaction done and simply leave, leaving you with no sale. Or he may leave his desktop to get cash to deposit to your bank account but may not return because he may have spent his money for another purpose.

4. You can reach a wider customer base. Customers who cannot physically reach your brick-and-mortar business can transact online. And because the Internet spans the world, you have a huge reach, no matter how small or big your business is. The more customers you have, the bigger the revenue.

5. You improve your cash flow. That is because card payments generally clear faster than cheques. In face-to-face sales, funds can take up to four working days just to reach a business’s account.

6. You improve your security. Because payments are made online, you hold less cash in your premises.

7. Administering the accounting aspect of your business becomes faster and easier. That is because a statement of card transaction is easier to reconcile than several cash transactions. In many cases, you lessen administrative resources that are typically required in processing invoices, cash, and cheques.

8. Debit cards and credit cards can be used automatically. Thus, with an online payment method, you can sell to consumers overseas. Furthermore, currencies are converted automatically with online payments.

9. Online transactions are more secure. A customer’s card is thoroughly checked for validity, making sure that it hasn’t been reported stolen or lost. This minimizes the chance of an identity thief to make a transaction. In addition, a customer’s account is also checked to make sure that sufficient funds to make the purchase are available.

10.  The inclusion of an online payment system gives your business a competitive edge. You present your customers with a full range of payment options, which a competitor may lack.