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Payment Methods Used to Complete Modern Transactions Online

You should be capable of exchanging money for goods and services, regardless of whether you’re selling them Recommended Reading or buying them. Online transactions can be completed using a variety payment methods.

The most commonly used type of payment is with credit cards. Credit cards allow you to draw money from a credit line up to a maximum limit. The bank gets the transaction every time you make a payment with your credit card. The bank verifies all the details and sends the authorization back to merchant. The merchant then has the choice to either accept or deny the transaction.

Another popular method of payment is an ACH (Automated Clearing House). These are electronic transactions that can take up to a week for processing. These can be international or domestic, and may require extra details such as a bank account or routing number.

Many people today discover and purchase products through social media platforms. With features like in-app checkout and shoppable post, these platforms provide a simple and simple way to purchase directly from brands.

The rise of social networks has prompted companies to develop other ways to enable online payments. These newer forms of payment include digital currencies and cryptocurrencies which work similarly to traditional currencies, but have the added benefit of anonymity and cryptographic verification. The rapid growth of these technologies underscores the importance of the infrastructures that enable online transactions and how they are evolving into a larger category of ‘transactional data’.