Payment systems are an essential element of online commerce, and there are various payment solutions to consider when selecting one for your business. From direct bank transfers to credit cards, these payment systems offer customers convenience and security – with some even helping reduce costs by decreasing the number of manual steps involved in each transaction. It is essential that businesses carefully consider both pros and cons before selecting their chosen solution.
Virtual Internet Payment Systems (VIPSs) are web-based applications that enable merchants and businesses to accept credit card payments over the Internet. Similar to credit card machines, these virtual terminals make accepting payment easier – without special hardware required, access can be gained from any device connected to the internet, making this tool ideal for merchants conducting sales over phone lines or online. Especially handy are VIPSs when selling via telephone lines or online as customers simply read off their card number to a clerk who enters it into their virtual terminal terminal.
Utilizing an online payment system enables businesses to accept credit card payments from customers globally. The virtual payment system connects securely to merchant bank accounts and transmits encrypted transaction details directly into them for approval or rejection based on what information exists in bank records. In addition, virtual payment systems are ideal for processing recurring payments such as membership fees or software as a service (SaaS) charges.
Virtual online payment systems offer similar levels of security as traditional credit cards, meaning the buyer’s credit card details will never be revealed to sellers. In addition, they include features that increase security and reduce fraud such as multi-layered encryption system, fraud prevention tools and risk management features.
Apart from traditional payment methods such as advance payment, cash on delivery and SEPA direct debits, buyers also have access to mobile wallets like Apple Pay and Google Pay that operate through an intermediary service provider such as PayPal or giropay to link a customer’s bank account to their smart device.
FVHI realized that for their FVIPS to succeed, they needed to attract both users and sellers in large numbers. Their marketing department devised a three-pronged plan: first they focused on drawing press attention – articles appeared in several publications such as Business Week, Newsweek, Fortune, The Economist and San Francisco Chronicle about Lee Stein and FVIPS as an entity; next they targeted transaction processors who might extend their services online via FVIPS; finally they contacted potential buyers through its website; this strategy paid off with FVIPS quickly increasing both user base size and transaction volumes considerably