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Online payment process is really a convenient alternative to making payments by cash or check. Online payment services are quite different since they do not require businesses to own accounts together to make a payment or transact business. The payment process through online services is much faster and secure than traditional modes of payment. They use a secure electronic fund transfer system to be in transactions.

The services are particularly popular among online auction sites and online stores. It has been around good enough to be accepted as a secure and trusted method of spending money on online purchases. While there are numerous advantages of utilizing an online service to conduct business, they do have some loopholes and drawbacks which can be sometimes exploited by unscrupulous elements.

The services use a very easy process to transfer funds. Buyers and sellers are expected to provide the mandatory information such as their name, current email address, checking account information and bank card details spay india. Checking account information is generally called for, confirming the identification of the user. To cover the seller, the customer must enter the valid current email address of the recipient and the quantity that is usually to be sent. Just in case the recipient is not just a registered person in the payment supplier, they get an email that directs them to the method of claiming the transferred funds. They're either paid by way of a check or the funds are transferred for their bank account.

Payment services charge their client a tiny percentage of the transacted amount as fees or service charges to take care of their expenses and overhead. These fees are less compared from what they'd buy using a credit card merchant account. Another advantage is that these services may be used for making small payments over frequent periods such as customer discounts, commissions and rewarding affiliates.

There are several drawbacks of the system. Many online service providers impose limits on how many transactions as possible carry on daily/weekly basis. Businesses that exceed the limit imposed are expected to pay premium charges or additional fees to keep doing transactions. In the long term, this can lower the earnings earned by the business.

Online payment services aren't governed by the rules and regulations which can be binding on federal institutions and banks. Consequently, they are not protected by federal deposit insurance. Such services offer their customers less protection against frauds when compared with bank card companies. Like, the maximum protection that online payment supplier PayPal offers for almost any fraud committed or for non-deliverance of goods is only $200.

Online payment services are quick to freeze accounts of clients should they suspect fraud or some form of fraudulent activity in transaction. Resolving such issues may force the users in to a legal tangle causing huge losses, not just as a result of revenues and goods lost, but in addition as a result of additional costs incurred in fighting the case legally.

Most online payment services are issued a website privacy seal right, which indicates which they follow certain privacy and security guidelines to guard consumers' interests.