5 Common Payment Modes All Buyers Should Know

Posted on | November 2, 2009 | 5 Comments

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Ever wondered what are the payment mode choices you have when you are shopping online? Perhaps you have heard about it but have no idea what it is really. I will be sharing with you 5 Common Payment Modes All Buyers Should Know to solve your mystery of what are the options available for you when you shop online.

#1 Internet Banking

This is most commonly used for blogshops or online shopping site in Singapore. If you have an account with DBS/POSB, UOB Group or other banks, you can make payment via Internet Banking Services to make purchases. You simply need to transfer the total amount for your order to the  seller’s bank account via the fund transfer option.

Majority of blogshops or online shopping site seller will usually have an account with DBS/POSB banks. Therefore, payment via Internet Banking Service to their DBS/POSB account is more common.

Tips: Do remember to print out your transactions or write down your transaction reference number. You can even save a copy of the email that you sent to the seller with regards to your confirmation of the Internet Banking fund transfer.

#2 Payment via Credit Card/ Debit Card (Online or Offline Mode)

This mode is less common amongst blogshops or online shopping sites who have just started out or are not established. The Online Mode is more common than Offline Mode. The Offline Mode, provides a value-add service for customers.

Online Mode

Payment by Credit Card/ Debit Card via MasterCard or Visa. You have to enter your card number in order to make purchases. To promote safe online shopping, some blogshops or online shopping sites supports Verified by VISA and Mastercard SecureCode.

Verified By Visa and MasterCard SecureCode enable two parties (card holder and card issuer) to authenticate each other by exchanging electronic identifications before proceeding with an online transaction. This assures the Cardholder that he is dealing with a legitimate merchant and it provides the merchant with proof of participation of the real Cardholder. This gives both parties the confidence to proceed and creates a digitally signed record of the transaction that can be verified afterwards. It protects you against unauthorized use of your card when you are shopping online.

Tips: Do remember to print out your transactions or write down your transaction reference number.

Offline Mode

If you are worried about the security of your credit/debit card transaction online, some blogshops or online shopping sites make Offline Mode available. A delivery personnel will bring along the credit/debit card swipe terminal to your location upon delivery. The actual card holder will need to be present at the point of delivery as a signature is required on the transaction slip.

Tips: If possible, do not meet the delivery personnel at a secluded place.  If for convenience you need to meet the delivery personnel at home, do try to have someone else home with you.

#3 Third Party Payment Methods (eg. PayPal)

Payment via PayPal is best for those who wants to enjoy both security and reliability.

PayPal provides an extra layer of insulation between you and the seller. You provide your payment details to PayPal, which then makes payment to the merchant without revealing your financial details.

However, not all blogshops or online shopping sites seller have this option because they may incurred a small transaction fee from PayPal. You will usually find PayPal option available on blogshops or online shopping sites who are keen to made business with customers who do not resides in Singapore.

#4 Crossed Cheque

This payment mode is less often seen, as many blogshops and online shopping sites in Singapore are patronised by late teens or young adults. They are looking for cheap and good deals to save money. They may not owned a cheque book too.

There is usually a clause about the time period that your cheque needs to reach the seller.

Tips: Do note when you send out the cheque. Also remember to ask seller to reply with confirmation when they receive your cheque.

#5 Cash on delivery

A very conventional method and well accepted by many as you will be less skeptical whether you are buying from a scam. This is most welcomed by shoppers. You pay using cash which you will collect upon delivery. This allows accountability and security to be fulfilled. You get to see your purchases, check your purchases and pay the seller.

However, not all blogshops or online shopping sites provide this mode because it requires and tax on their manpower.

Tips: To protect yourself, please meet your seller at a place that is not secluded. If your purchases are bulky items and you need to meet the seller at home, do try to have someone else home with you.

Conclusion

I personally recommend you to use Cash on Delivery if the blogshops or online shopping site have this mode available. This is because you get to see the seller and also get to check on your purchases in the presence of them.

If this option is not available, try PayPal. If PayPal is not available, use Internet Banking, because you do not need to provide your Credit/Debit Card number.

If you are not residing in Singapore, PayPal will be the preferred option for you.

Tips for international buyer: If you are really keen on a certain item from the seller but they do not provide PayPal mode, send an enquiry to them. Let them know you are really interested to purchase a product from them. They will usually be flattered. Ask if they can make PayPal available for you. I’m sure if the seller is keen to retain customers, they will make this available for you

This sums up my 5 Common Payment Modes All Buyers Should Know. Which do you prefer?

Do drop me your comments with regards to my post.  Thanks!

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