Top 9 Online Payment Methods


There’s so much virtualization going on around the world that even the transaction of money is not devoid of its effect. Money is rather exchanged as e-money. In all the field areas of life, this e-money plays a very important role. In banks, gas agencies, telephone departments, electricity billing departments, shopping malls, educational institutes, mobiles and even for an individual, transaction of e-money is a daily work.

All the payments are easily done with this e-money concept via online paying methods. The transactions have become quickest and easiest. There are a number of online payment methods available that are used frequently. Moreover, new methods are also emerging keeping into account the customer satisfaction these payment methods provide. Below is a list of various online payment methods:

1. Online Bank Transfer/Internet Banking


Internet banking is perhaps the easiest ways of making payments. Just login into your account with the username and password provided by the bank, and you can do a number of transactions just by clicking the mouse. This payment method is used by almost all the websites that offer money transactions. Internet banking provides the facilities of transferring funds from one account to another account, both within the same bank and to an account of another bank.

On choosing internet banking as one of the payment methods at the website, one is directed to the home page of the concerned bank where one has to enter the username and password. So simple it is!


a)      Payment can be done conveniently, sitting at home. No need to visit the bank.

b)      Quickest way of payment. No longer waiting in a queue.

c)       If there’s an error in payment, amount gets refunded. Money is safe.

d)      Transactions are recorded and information about the same is sent via SMS.

e)      Money is password protected which is not shared with any other person.

f)      Transfer to any bank account can be done within a minute.

g)      24*7 service is available. Payments can be done at night.

h)      You get reward points on every transaction. Many companies have this policy.


a)      Safety is the concern. Issues of unethical hacking.

b)      If forgot password, one either needs to visit the bank to get a new one or wait for some days after submitting online requests. Inconvenience is caused.


a)      Don’t share your confidential information; username, password, secret questions and answers with others.

b)      Create a strong password consisting of numbers, alphabets (both capital and small) and special characters.

c)      Do change your password frequently.


2. Credit Card/Debit Card

No need to remember username of your account, just remember the password or a 4 digit pin number and the payment is done within a minute. Card number and expiry date is written on the card itself. Some websites require you to enter either password while in some websites, it is required to enter only the pin number.

Credit card and debit card are like cards consisting of all the money. Just put in your pockets or wallets safely and do payment when required.


a)      Easier and convenient way of payment.

b)      Fastest payment. Takes a minute or less.

c)      No need to keep cash with you. All money is there in a small card.

d)      Cash is protected with the PIN number.


a)      If the card gets damaged, transaction cannot take place in ATM. Inconvenience is caused.

b)      If the card gets lost, it takes some days to get a new one from the bank.

c)      Security issues if PIN gets leaked.

d)      Card gets blocked usually after 3 incorrect passwords. Customers need to apply for new PIN number which takes few days. Inconvenience is caused.


a)      Don’t share your PIN password with others.

b)      Keep your card in a safe place.


3. Cash on Delivery

Purchase the products with zero cost and wait for the delivery boy to deliver the order. Check your order carefully and then pay the cash. Many of the companies prefer this as the online payment option because of the trust it reflects to the customers. Cash on delivery used to be common with restaurants and hotels from where foods and beverages are ordered but it has also become a common payment options with a number of e-commerce shopping websites.

Though the payment method is offline but the method of ordering the product is online and is listed among other online payment methods.


a)      Customers need not to pay first. First receive the product and then pay.

b)      Product can be checked if there’s anything missing and then pay satisfactorily.

c)      Does not have password security issues. Best for those who don’t use internet banking or credit/debit cards.


a)      It takes time for the money to reach the seller. It is first collected by the delivery person who then deposits it to the seller.


a)      Don’t forget to take receipt from the delivery person.


4. Paymate/Mobile Payments/Telephone

Since mobile is the only gadget that remains with us from the time we get up to the time we go to sleep, the option of paying money using mobile has been introduced. The biggest example is of Airtel money that lets you pay bills etc. using the mobile phones. One just needs to register one’s mobile number in the merchant’s website. Other examples are Google wallet, Square etc. which are the mobile apps that can be used for payment via mobile.


a)      Convenient way of shopping from anywhere.

b)      Payment can be done using WAP.

c)      No need to put your cash in pockets. Keep it in your mobile.


a)      Security issues.


a)      Account Password should not be shared with others.

b)      Keep your mobile safely. It may be stolen by thefts.


5. Paypal

This is an international payment method through which one can get payments from any of the countries across the globe. Make an account at the website and enter details of either your bank account or debit/credit card. One gets a paypal id which is unique, mentioning this to the depositor is the only thing one has to do. Paypal payment system is used by a number of organizations around the world.


a)      Easy payment. No bank account is required.

b)      No need of entering the Debit/Credit card details every time transaction is to be done.

c)      Transaction can be done across the world.


a)      Issues of ethical hacking.

b)      Setting up a pay pal account requires formalities of account verification. Time consuming.

c)      Funds are on hold and account gets blocked till further proceedings, if terms violated.


1)      Keep your pay pal password confidential.


6. Zipcash

This is a unique method of payment which is used by a number of shopping websites, pay utility bills to cable networks and various merchandisers. One needs to register on zipcash website by creating an account. Just tell your zipcash username to the depositor, after getting money in your account you can pay for the purchases to the merchandisers.  It can be used from mobile or accessed from computer. Zipcash is available as one of the payment options at and Survey site like makes payment via zipcash.


a)      Convenient way of payment.

b)      No credit/debit card is required.

c)      Transaction information is sent via SMS.

d)      Transaction is secured via PIN.


a)      Account hacking issues.

b)      Documents need to be submitted for transaction of more than Rs 10000.

c)      Zipcash coupons have expiry dates that vary from 6 months to 1 year.


a)      Keep your username and PIN safely.


7. Gift Vouchers

One of the most exciting and attractive payment methods is paying via gift vouchers. It is mostly used to gift your loved ones who can purchase the products of one’s choices. A number of gift vouchers are available at the merchandiser’s website. Purchase the gift voucher from the website and send it to your loved ones.


a)      Gives happiness after purchasing via gift vouchers. It gives an enjoyable shopping experience.

b)      No use of credit/debit card

c)      No security issues involved


a)      Gift vouchers have expiry dates and have to be used within the stipulated time.

b)      Gift vouchers are generic and have no preference to the buyer’s choice.


a)      Keep your gift voucher code confidential.


8. Redeem Points

One can make payments from the points one has earned by redeeming them. One has account on a number of shopping websites and other ecommerce sites that provide points some or the other ways which are equal to money when one redeems them. For example, online survey takers earn points by participating in surveys. When they get enough points equivalent to cash, they redeem the points and get money. Similarly, many shopping websites also give points for every purchase made by the customers.


a)      No security issues involved.

b)      No credit/debit card

c)      Free money with earned points


a)      Less purchase is possible as points are earned by the customers are less. It gets huge only when accumulated.

b)      There may be expiry dates for the points to redeem or you may lose them.


a)      Keep track of all the redeem points.

b)      Use them within the expiry dates or notice periods.

9. Discount Coupons

Discount coupons are available both offline and online that can benefit someone by reducing the cost involved. These are available free of cost that can very well help you in reducing the cost of the products to be purchased. During seasonal offers and festivals, there are more chances of getting these gift coupons. Transaction for discount coupon is done simultaneously with the transaction of product purchase. Customers need to enter the coupon code which can be alphanumeric, only numbers or only letters. It is a bit similar to the way we enter captcha but not exactly the same.


a)      Discount at the price to be paid.

b)      It may or may not be applicable to individual customer. Some companies offer same discount coupon to everyone who purchases the product.


a)      Coupons have expiry dates.

b)      Generic offline coupons can be stolen and used by anybody.


a)      If the discount coupon is personal to you only, keep it safe and don’t share with others.

b)      Enter the coupon code correctly while transactions.

c)      If the coupon is offline/hard copy, keep it safe. Don’t rub off the code.


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