I've recently seen several studies (Forrester Research, SunTrust) saying that consumers prefer alternative payment methods because of their ease, security and savings.
Based on your experience, what is the most effective payment method and which leaves your customers happiest?
For my business, the most effective payment method is Credit Card. Most people seem to go this route and from a business standpoint, the transaction fees are typically lower than other payment methods. We also offer PayPal and Google Checkout. Unfortunately though, Google Checkout does not yet allow for automated recurring payments (i don't think) and PayPal seems to have issues with this.
I agree with the OP's reports about how consumers prefer a variety of payment methods. Especially if your business appeals to both a domestic and international audience. After all, it makes sense to make it easy for people to pay. :)
What is your business, Jay? Are you referring to this forum or another business?
I wish I could remember this site I was just at the other week. There were almost 16 ways to pay. I've never seen anything like it, but it might have been overkill. ;-)
What is your business, Jay? Are you referring to this forum or another business?
Other businesses. I mostly work at a marketing firm but also do some consulting on the side.
I agree tho.. 16 payment gateways is probably overkill. I can't imagine supporting that many. Was it a big company?
No, actually it was a small shop. I notice that Buy.com does PayPal, Google CheckOut and Amazon Payments. Whenever I check out from there I try to remember which one I like the best. Haha.
I think there is no black and white in this case.
That in mind, I do believe options are what we all prefer as consumers.
I know in many cases, I do not like to pay with my credit card depending on the business I am purchasing from. As such NETeller, PayPal, MoneyBookers and the like are excellent alternatives.
IMHO accepting as many varied payment methods as economically possible is the best route to take for an e-commerce business.
Credit card payments are better because these payments are secure but some times these are unreliable due to the absence of amount in the account for which the customer faces a problem but it happens in very rare cases.
What is your business, Jay? Are you referring to this forum or another business?
I wish I could remember this site I was just at the other week. There were almost 16 ways to pay. I've never seen anything like it, but it might have been overkill. ;-)
I can't even think of 16 different way to pay! I wonder what they all were? Aside from credit card processing and paypal I can't think of 14 other ways to pay online. I have to wonder if that might pose a security risk to the site, allowing so many options?
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