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Over the years, the types of payment methods have greatly developed and changed in many ways. Every day, new and more advanced payment providers appear on the horizon and will likely continue to appear in the future as well.
However, not all of them are created equal, and not all of them offer the same conditions and convenience to users. They differ depending on the quality, speed, security, and cost of offered services.
In this article, we will throw a quick glance at the top payment systems and the transaction fees coming along with them.
#1 Credit and Debit Cards
The most popular and widely accessible payment type people worldwide like to use are credit/debit cards.
Credit card companies, including American Express, Mastercard, Visa, and Discover, advance credit to users; the customers pay their card balance every month while the purchase price is covered by the company. On the other hand, debit cards deduct money straight from the customer’s bank account instead of extending credit to the purchaser.
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When it comes to transaction fees, credit cards typically ask for a commission ranging from 2.87% to 4.35% of each transaction. However, this doesn’t cover merchant service provider fees.
The fees for debit cards stay below 1% of the purchase cost. Precisely, the average you need to process a debit card transaction is about $0.34 – 0.74% per transaction. This data is from the Federal Reserve and covers all forms of debit transactions, including covered and exempt transactions from all networks.
#2 PayID
If you are from Australia or New Zealand, this payment method will undoubtedly be quite familiar to you. It is a safe and fast way to send or receive payments without filling in BSB or account numbers. You just need to have a specific PayID, which is typically a mobile number or email address that is used to make transactions.
This simplicity of use and security is the core reason this payment option is used in almost all industries in the country, including gambling. Therefore, it’s no surprise there are so many PayID pokies online in Australia featuring this payment solution.
A good thing about this service is that there are no transaction fees for PayID since the participating banks and financial institutions primarily manage fees and commissions on their own terms.
However, when making international transactions, you can encounter some fees set by international providers. This can cover setup fees or FX costs.
#3 PayPal
PayPal is a well-recognized digital wallet used for both domestic and international transactions. It simplifies e-commerce, streamlines online purchases, and promotes online shopping.
The system draws funds from your account and loads them into your PayPal account. Once done, the customer can use these funds to pay for services and products accepting PayPal transfers.
If you make mass payments, you should pay a transaction cost plus a transaction percentage for global payments. For international users, they may need to pay cashout and currency conversion fees. PayPal asks for different fees for a card-to-PayPal transaction and transfers between two PayPal accounts. The commissions you pay can also vary depending on the currencies you want to exchange. All in all, you can expect to pay a transaction fee of up to 5% for trans-national proceedings plus a 3% currency conversion fee.
#4 Neteller
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Neteller is an easy-to-use payment solution specifically designed to provide customers with a safe, fast, and functional platform for carrying out online transactions. Most importantly, with Neteller, you can cash out or deposit money directly through Net+ cards or by transferring the balance to your bank account.
There are numerous ways you can use to deposit transactions, covering Visa, Mastercard, and Epay. The fee for all these alternatives is at an unvarying rate of 2.5%.
#5 Skrill
Skrill is another dominant player in the global payment market. It operates in over 100 countries and accepts nearly 40 currencies.
No matter the type of your Skrill account, withdrawals, deposits, and transfers are fee-free.
However, the provider has specific exchange rate margins, so you may spend enough. Precisely, Skrill charges a 3.99% exchange rate margin, which is quite higher compared to transferring fees of other banking services.
Some Final Thoughts
Above, we have gathered some of the most demanded payment methods and their transaction and processing costs. Each of these payment systems features its own set of distinguished benefits and disadvantages.
So, when sniffing out the most suitable payment option with rational transaction costs, make sure to check whether the quality matches the price.
