Whether you’re buying or selling there is a way to exchange money for services and goods. You can conduct online transactions using a variety payment methods.
Credit cards are the most frequent method of payment. Credit cards allow you to draw funds from a credit line up to a maximum limit. The bank receives the transaction every time you make a payment using your credit card. The bank checks the transaction’s details and sends authorization back to the merchant. The merchant can then accept or decline the transaction.
Another method of payment is an ACH (Automated Clearing House) or wire transfer. These are electronic transfers that can take up to a week for processing. These transfers could be international or domestic and may require additional information such as an account number for a bank or routing number.
Nowadays, many people find and purchase items on social media platforms. These platforms let users purchase directly from brands using features like in-app checkouts, shoppable posts and in-app purchases.
Companies have come up with other ways to enable online payment due to the rising popularity of social networks. These types of newer payment include cryptocurrency and digital currencies, that function similarly to traditional currencies but have the added benefit of anonymity and cryptographic verification. The growth of these technologies reveals that the infrastructures supporting online transactions are changing and are becoming a larger classification referred to as ‘transactional information’.