Methods of Electronic Payment for E-commerce Stores: The Short Guide

Methods of Electronic Payment for E-commerce Stores: The Short Guide

When setting up your online store, you might be confused about what payment methods you need to accept. After all, it’s all about making things easier for your customers and increasing your conversion. Nobody likes to deal with complicated checkout procedures! 

Whether you have a physical store or an e-commerce site, it is essential to care about how customers will pay for their purchases. The payment method you choose can make a big difference in whether people buy from your store ever again. This way, it’s essential to consider the pros and cons of each payment method so that you can decide which one is best for your particular store. 

This article is a short overview of the most common methods of electronic payment for e-commerce businesses.

Credit Cards

Credit cards are the most popular way to pay for online purchases. Almost everybody owns at least one credit card and uses it to buy online. 

Here are some advantages of credit cards for e-commerce merchants:

  • Credit cards are the most secure payment method for online stores. You don’t have to worry about chargebacks, fraudulent charges, or identity theft.
  • Credit cards are accepted worldwide, making it easy for your customers to buy from you, regardless of the location.
  • Credit card payments feature quick processing. You don’t need to wait for your customers to transfer money using other payment methods. 

Disadvantages of credit cards for e-commerce merchants include:

  • Credit cards tend to have higher transaction fees than other payment methods. If you have a high-volume store, these fees can add up.
  • Credit card payments have a higher threshold of entry than other payment methods. Some customers may feel uncomfortable sharing credit card details with an online store.


Regardless of what you’re selling — physical or digital goods — PayPal can be a good source of income. It’s a well-known and trusted online payment method that millions of people use daily. 

PayPal advantages e-commerce merchants might want to consider:

  • PayPal supports a wide range of payment methods, including credit cards, bank transfers, and even cryptocurrencies.
  • PayPal has an attractive feature that allows customers to send you money for an item even if they don’t accept PayPal as a payment method.
  • PayPal offers fraud protection that can help you recover any money lost to scammers. 

Still, there are disadvantages of PayPal that e-commerce merchants might want to take into account:

  • You pay a fee every time you receive a payment via PayPal. The exact amount of this fee depends on the volume of your transactions.
  • Using PayPal on your e-commerce site can negatively affect your SEO.

Electronic Wallets

Electronic wallets (also referred to as e-wallets) are another convenient payment method. They are similar to regular wallets, only used to store digital money. 

The advantages of electronic wallets for e-commerce merchants are as follows:

  • Electronic wallets are convenient for customers because they can use their money to pay for goods and services online.
  • You can accept payment from a wide range of electronic wallets. 

Disadvantages of electronic wallets e-commerce merchants might want to consider:

  • Not all electronic wallets have the same level of security. Make sure you choose your payment method carefully.
  • Some customers might not like the idea of using a virtual wallet.

Virtual Credit Cards

A virtual credit card is a 16-digit number associated with your existing credit card account, randomly generated every time you want to make an online purchase. A virtual credit card, usually offered by your physical credit card provider, aims to protect users against fraud. It substitutes your real credit card so that you don’t have to share its number when you shop online. Moreover, after you make a purchase, the number is retired and never used again. It prevents fraudsters from stealing your credit card number.

Advantages of virtual credit cards for e-commerce merchants:

  • Virtual credit cards are easy to use. You can create an account with a third-party provider and start accepting credit card payments right away. You don’t have to worry about the security of your online store because the risk is on the third-party provider. 

Disadvantages of virtual credit cards for e-commerce merchants:

  • Third-party providers charge high fees for virtual credit cards.
  • Some providers don’t offer the same level of security for virtual cards as regular credit cards.

Bank Transfers

Bank transfers are one of the oldest payment methods in the world. Many folks still use it to transfer money from one bank account to another. 

Advantages of bank transfers for e-commerce merchants:

  • Unlike credit cards, bank transfers are a highly secure way of accepting payments.
  • Customers can use this payment method without any risk. 

Disadvantages of bank transfers for e-commerce merchants:

  • You can only accept bank transfers from customers having an account in the same bank as yours.
  • Bank transfers have a slow processing speed. At this point, your customers might have to wait a while before they get their products.


Choosing a suitable payment method for your online store is crucial. You might want to consider various factors, such as security, ease of use, transaction speed, and more, to decide what payment method might fit the bill for you. The general advice here will be to choose the payment method that makes the most sense for your business. Keep in mind that payment methods change as new technologies evolve. It will be your job to stay up-to-date and accept the best payment method for your online store.

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Irina Seagull

Irina Seagull

Irina has a degree in Linguistics, 15 years of teaching experience and 3 years of experience in managing a team of 15 in a small business. Irina believes that a good structure and logic as well as in-depth research should be the attributes of every blog post.

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