Credit and debit card payment

Credit and debit card payment is one of the most common payment methods worldwide. Whether it comes to retail or online shopping, offering credit and debit card payment as a payment method is expected by the consumers.

Worldwide, four major payment card organizations divide up the market for card payments. Mastercard, Visa, American Express and Diners are the four main credit/debit cards.

Credit card payment | Visa | Mastercard | American Express | billwerk Wiki

Mastercard and Visa are particularly relevant, as they are issued by credit institutions and banks worldwide. Payment by credit and debit cards is the common norm, which the consumers expect as a payment offer both online and offline. In addition, new technologies such as contactless payment are making things more convenient.

What are the advantages of credit card payment?

For the custumer:

  • Instant convenient payment
  • Recurring payments easily adjustable, depending on the provider often by one click or by default setting (of course with corresponding objection option)
  • Credit card payments are not immediately debited from the reference account
  • Depending on the credit card, the cardholder might receive bonus points (e.g. Miles & More)

For the company:

  • Fast and secure payment processing
  • The cost of processing payments is much lower today than it was just a few years ago (fees are capped at 0.3 percent of the payment amount). Corporate credit cards and American Express cards are exceptions.
  • Higher security and faster order processing, because once a payment is authorized within seconds, the probability of non-payment is extremely low.
  • Further increase in consumer acceptance. In addition, payment services such as PayPal also offer their customers payment by credit and debit card.

As with any payment method, there are also disadvantages with credit card payments. There are fees for both the customer and the merchant. As mentioned earlier, the merchant has to pay a fee per transaction. However, the fact that fees are tending to fall and consumer acceptance is increasing means that credit card payments should definitely be considered as part of the payment portfolio.

What does payment cards mean for the Subscription Economy?

Especially in the subscription economy, start-ups and smaller companies, payment by credit and debit card is becoming increasingly important. Increasing online purchases in recent years have led to ever greater acceptance of payment cards. As a result, this convenient payment method is also very popular for subscription models. With payment cards there are course also more security (PCI DSS compliance requirements). But Payment Service Providers (PSP) take care of the proper processing of credit card payments, so that the company can dispense with tying up resources in this case and instead concentrate on its core business.

Conclusion: A must for online commerce

One thing is certain: the more payment methods an online company offers its customers, the more sales this means for the company itself. Above all, however, offering Mastercard, Visa & Co. in online commerce is a confidence-building measure. These are well-known and popular brands that enjoy a high reputation and trust, especially among the subscription and online-savvy target group. Moreover, in times of numerous certified PSPs, the company no longer has to worry about payment processing itself, but instead makes every effort to advance its own business.