Since 2007 electronic bill payments have surpassed the more traditional use of paper checks by consumers. It isn’t terribly surprising given the convenience of using an online payment system. Everyone with a checking account already has a debit card which can be used with most if not all payment processing companies that utilize online credit card processing. With this rise in digital transactions, there is a need for specialized entities dealing with internet based accounting.
Online payment systems are a crucial service in that they allow businesses and private individuals to send and receive payment for services in a secure way. Of course, businesses and consumers have different needs when it comes to payment processing, something which many providers are finding new, better methods to adapt to. For example, whereas before businesses may have only accepted payment via credit card, many now allow payment through third parties, allowing you to store your account information on site. This provides added security by only exposing a third party account name, not your credit card or bank account information.
B2B credit card processing has become more mainstream for businesses looking to increase security and convenience. Many companies now serve to make B2B payments easier between businesses and the everyday consumer, but also for level 2 and level 3 transactions, level 3 processing involving government or corporate clients.
The credit card merchant account has been in existence for some time. Many creditors extend special terms and services to the businesses that use them. As the popularity of online shopping continues to grow so too does the need for internet merchant accounts allowing for greater ease of access to consumers and business partners. Such services often have virtual hubs, granting the ability to set up recurring bill pay, electronic invoicing, and other crucial services.
While more traditional forms of payment are still very much alive, utilizing merchant accounts, especially those online, makes great sense in an environment where electronic bill pay continues to become more popular. They add convenience and safety in record keeping, speed to your transactions, and remove the need for the consumer to travel to obtain service.