10. Methods of payment continued.

Online account

If you are a regular customer, then many shops offer to open an online account with you.

You keep the account topped up with some money and simply deduct any purchases you make. Of course you have to top up the account with a credit card, but it saves you the hassle of entering all your payment details each time. It is also good for the shop as they are confident that you are who you say you are.

The disadvantage is that the money you have put into the account cannot be used in any other shop - i.e. you tie up some of your money.

Third party payment

If you do not want to use a credit card directly with the shop, then another option is to use a third party payment system such as Paypal. Many online shops accept Paypal payment.

The way it works it that Paypal handle your payment and pass it on to the shop (after charging a percentage to the shop for the transaction). From the customer point of view it has the advantage of not having to keep re-entering credit card details to every shop.

The payment firm will either deduct payment in your account with them, or they bill your credit card for the purchases you have made.