5 Alternative Online Payment Methods

5 Alternative Online Payment Methods

Credit cards and Paypal are the most common online payment options in the U.S. However, in other parts of the world like Africa, these payment methods may not always be available. That’s why you need to know what the options are that are convenient, safe, and easy to use.

When searching for a suitable payment method, you should look out for:

  • Low transaction fees
  • Quick and easy account setup
  • Fast money transfer
  • Efficient customer support
  • Good user reviews.

Here’s a brief review of some of the popular alternate online payment options available around the globe. 

Debit cards

Prepaid debit cards make online payment quick and simple. Unlike a credit card, that gives you a bill at the end of the month, a debit card removes money from your bank account immediately after you make a purchase. Many banks now issue debit cards to customers who open either savings or current (also called checking) accounts. Many online services and merchants accept debit cards offered by Visa and MasterCard.

The Pros

  • Convenience: Cash leaves your account immediately, no need to settle credit card bills at the end of the month.
  • Prudence: Debit cards help you to stick to your budget as long as you are not permitted to take an overdraft.
  • Easy to own: You don’t need a credit check or lengthy application to own a debit card.

The Cons

  • There’s a higher risk of having a disputed charge that requires a refund.
  • You seldom receive reward points, as you get with credit cards.
  • You can’t use it to automate periodic payments without attaching it to an e-wallet account.

Skrill

With Skrill, you get more than a mere means of payment. It gives you an online account that you can use to receive money as well. Skrill is a multipurpose e-wallet account with a prepaid debit card that you can use to make a payment on online stores and also withdraw money from an ATM. 

The Pros

  • It works anywhere in the world
  • You can use it with different currencies
  • Opening an account is quick and easy.
  • The transfer fee is either 1% or a maximum of 10 euros.

The Cons

  • The company has strict fraud prevention rules which include freezing of accounts.
  • Customer service does not always resolve problems promptly.

Nonetheless, Skrill is still quite popular for a number of different uses. When it comes to online transactions, it is also one of the most frequently used online casino payment methods, which allows users to enjoy bonuses from casinos.

Neteller

This is another popular e-wallet service. Neteller is a secure electronic money transfer service designed to transfer funds to or from merchants that accept it. It is commonly used by forex trading companies, social networks, and online casinos. With a Neteller account, you can withdraw money directly with a Net+ debit card or transfer funds to your bank account. This payment method is also popular amongst online casino players. 

The Pros

  • It is easy to use
  • Deposits are processed quickly
  • Transfers to merchants are fast and secure
  • Bank information is not revealed to third parties

The Cons

  • Transfer fees are not a fixed percentage. They range from 1 to 5 percent and rise as the amount increases
  • Withdrawals can be slow to process.

ecoPayz

This is another e-wallet service available to punters. While it is not as big as Neteller or Skrill, ecoPayz is a rapidly growing service provider. With their ecoAccount, you can transfer money to and from merchants. There are also prepaid cards available in USD, EUR, and GBP. It is accepted on a large number of forex trading, bookmaker and casino websites.

The Pros

  • The two-step authentication helps to protect user accounts
  • No credit checks are carried out before issuing the prepaid card
  • The ecoVirtualcard, a one-use payment card, allows you to pay for products and services without giving out your personal information.
  • You can transfer funds to friends and family for free.

The Cons

  • Fewer merchants are accepting ecoPayz than Skrill or Neteller
  • The company may request for a lengthy verification process
  • The company can close accounts without notice due to inactivity.

Wire transfer

Bank transfers are becoming more popular for online shopping. Various e-commerce sites, payment processors and online casinos accept them. Many people, who are afraid of using e-wallets or prepaid cards, prefer to use this method of payment.

The Pros

  • Most banks offer the best security technology available on their online payment platform
  • Bank transfers have a wide acceptance online and they are the preferred method of payment for many people in developing countries.

The Cons

  • Bank transfers take longer than e-wallet and credit cards
  • Banks charge relatively high transfer fees when you make payments online 
  • Receiving money also attracts substantial transaction fees.
  • Bank transfers may require you to reveal more personal information.

With this brief description of alternative online payment methods, you can now make an informed choice when you need to pay for goods or services online. E-wallets are ideal when you want to keep your details from the public while bank transfers tend to have a higher level of security, but with some caveats when it comes to the speed of the transaction and fees involved.

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