Things To Consider While Accepting Online Payments

Things To Consider While Accepting Online Payments

Whether you have a store or an e-commerce website, digital payments are necessary. The changing circumstances have pushed customers to use this means to make payments. The Indian Government has further propagated this through the Digital India campaign. Hence, having online payment channels for your business is essential for its smooth functioning.

Along with being a necessity, it is highly convenient. It lets you expand your business, build brand credibility, lower costs, etc. However, it is essential to think beyond setting it up. You should consider the many facets involved in it. It lets you have a proper structure to accept payments.


You need a merchant account for receiving online payments. It acts as the facilitator between you and the customer. It means it allows you to accept credit cards, debit cards, and other payments. It needs a series of steps to do that:

The customer initiates payments through phone or card.

The merchant account receives the transaction details.

This information gets transferred to the relevant card issuer or payment processor.

The issuer forwards the same to the customer's bank.

After checking the funds, the customer's bank approves the transaction.

The customer receives the notification for the approved transaction.

You receive the funds, which reflects within a few days in your business account.


Customers expect convenience when it comes to online payments. Hence, the more channels you provide, the better. If you use a payment gateway, ensure to have a variety of payment modes. This includes card payment, United Payment Interface (UPI), mobile wallets, etc. For in-person payments, QR codes, SMS links, point-of-sale terminals are apt additions. This way, targeting varied customer needs becomes easy.


There is a risk of fraud when you accept online payments. The only way to protect your business from it is to have stringent security measures. Therefore, choosing the appropriate digital payment service is essential. Ask questions about the fraud detection and prevention capabilities for the same. Check if you have two-factor authentication, tokenisation, and address verification systems in place.

Fees: Consider your business budget when choosing a payment processor to accept payments. Is the fee transaction-based or flat rate? Does it depend on the processing amount? What are the varying charges for card payments? Ask these questions before you sign up. Besides, check for any additional charges. These potentially impact the overall profit you make.


Even if you use a third-party payment processor, your business image is at stake when something goes wrong. So, make sure to consider the service provider's customer service. This helps reduce any potential lost sales. Check if you have a relationship manager and 24*7 customer support. The same goes for the merchant platform and payment gateway. They are equally responsible for a successful transaction.