Online Transactions for Business Advancement: Convenient, Secure, and Up-to-Date for the Digital Era
Online transactions are financial exchanges for goods and services conducted over the internet. They come with many advantages and limitations that online sellers should be aware of.
Online transactions are considered one of the most widely used financial innovations today. Therefore, entrepreneurs and online store owners selling through E-Commerce platforms should study and prioritize them to accommodate consumer behavior that favors cashless payments. Especially for those just starting an online business, they may not yet understand what online transactions are or what their advantages and limitations are. Find the answers in this article.
Article Table of Contents
• Demystifying Online Transactions: What Are They?
• How to Conduct Online Transactions Safely
• What Are the Advantages and Limitations of Online Transactions?
• KGP: Confidence in Every Online Transaction, Trusted Security
• Online Transactions: The Payment System New-Gen Sellers Must Know
Demystifying Online Transactions: What Are They?
Online transactions are the execution of financial transactions over the internet for the exchange of goods and services. While online transactions are essentially financial transactions through various bank intermediaries, they have evolved to align with changing consumer behavior, leading to a diverse range of online transaction types.
For entrepreneurs, especially businesses selling products or services through online channels, understanding and choosing the appropriate transaction system is essential. Examples of online transactions you should be familiar with include:
• Meta Pay: An online payment system that allows businesses to collect payments from customers via Facebook Messenger, automatically sending a slip into the chat after successful transfers. This reduces the burden of tracking slips and prevents errors from incorrect transfers or fake slips.
• Online Installment Payment System with Credit Card: Customers can receive goods first and pay in installments later, incurring interest rates determined by the service provider. This increases sales opportunities for customers who desire flexible payment options.
• E-Wallet (Electronic Wallet): Customers can pre-load funds to pay for goods and services, transfer money, link to credit cards, or collect points all in one app. This enhances convenience and flexibility in transactions.
*Use only as necessary and repay the full amount on time to avoid 16% annual interest.
How to Conduct Online Transactions Safely
While online transactions offer increased convenience and payment security, it's undeniable that they still have security vulnerabilities that sellers should be aware of and adequately protect against to safeguard their businesses. We've compiled methods to help sellers conduct online transactions with greater confidence, as follows:
• Always Check Inbound and Outbound Funds and Accounts: Many online sellers often neglect checking their balances due to communicating with multiple customers simultaneously. However, you should always check your bank account after closing a sale to confirm that the money has been received correctly and in full.
• Create Strong, Hard-to-Guess Passwords: Avoid setting easily predictable passwords such as birth dates or nicknames. Use passwords that include special characters, uppercase and lowercase letters, and numbers to prevent unauthorized system access.
• Avoid Disclosing Personal Information: While disclosing some personal information, such as a phone number or real name, might build credibility with customers, sellers should carefully consider before publishing such information. It could be used inappropriately or provide an easy channel for fraudsters to access personal data.
• Never Share OTP Codes: An OTP (One-Time Password) is a two-factor authentication system designed to enhance the security of online transactions. If you receive an OTP, you should not disclose or share it with others to prevent unauthorized access to important accounts or data.
What Are the Advantages and Limitations of Online Transactions?
Online transactions are like a double-edged sword. When used with understanding and proper management, they can greatly benefit both buyers and sellers. However, a lack of correct knowledge and understanding can also lead to business risks. Therefore, it's crucial to understand both the advantages and limitations, especially in this digital era where consumer behavior is rapidly changing.
Advantages
The advantages of online transactions include:
• Increases Sales Opportunities for Diverse Customer Groups: With a variety of payment options such as QR Code, credit cards, E-Wallets, or Mobile Banking, businesses can better meet the needs of each customer group, leading to increased sales conversion rates.
• Enables Spending Tracking: Online transactions allow sellers to track inbound and outbound funds from their bank accounts in real-time. This aids in preparing income and expense reports and managing inventory systematically.
• Helps Close Sales Faster: Certain types of online transactions, such as Meta Pay, allow customers to make immediate payments through chat platforms like Messenger, reducing the chance of customers changing their minds during the payment process.
Limitations
The limitations of online transactions include:
• Risk of Forged Transfer Evidence: For some online transactions, such as Internet Banking, buyers must send a transfer slip as proof of payment. However, fraudsters exploit this loophole by creating fake slips, forcing sellers to waste time verifying the slips' authenticity and risking becoming victims of scams.
• Limitations Due to Internet Signal: The stability of the internet connection directly impacts the continuity of transactions. If the signal is interrupted, it can affect sales closures or the customer experience.
• Technology Access for Certain Customer Groups: Some online buyers, especially the elderly, may not be familiar with online payment systems, leading to hesitation in making purchases or usage errors. Entrepreneurs should prepare guidance or alternative payment channels to accommodate them.
KGP: Confidence in Every Online Transaction, Trusted Security
If you are looking for secure and reliable online transactions, KGP is a Payment Gateway that caters to all customer groups, whether you are a seller on online platforms, a juristic person, or an individual. With a system designed for convenience and international-standard security, your business can start using it immediately without developing additional websites, applications, or systems. This helps enhance your business's professional image and builds customer confidence at every payment step.
Online Transactions: The Payment System New-Gen Sellers Must Know
Online transactions are a widely popular payment channel due to their convenience, speed, and alignment with current consumer behavior. Therefore, sellers should thoroughly understand the advantages and limitations of such transactions to use them appropriately and effectively boost sales.
KGP offers payment acceptance services via Meta Pay, which makes the payment collection process easy and secure. Once a customer completes payment, the system automatically sends payment evidence to the chat, eliminating the need for sellers to manually verify slips. Additionally, Meta Pay provides convenience to buyers with various payment options, including credit cards, debit cards, Mobile Banking, and QR Payment. This enhances customer convenience and encourages them to decide to purchase your products or services more easily, which will clearly boost sales and build a credible image for your business.
KGP, Payment. Make It Smooth.
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