What Are Remote Payments and How Do They Work?

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What Are Remote Payments and How Do They Work?

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In today's modern world, it's more important than ever to offer customers the convenience of being able to pay for goods and services in whichever way they choose, including over the phone and, of course, online.

In this article, we'll discuss what remote payments are, how they work, and shine a light on some of the benefits of using them. So, whether you're looking to start taking card payments over the phone or want to add online payment functionality to your website, read on for all the information you need.

Remote payments are a way of completing card transactions without the customer having to be present. Also known as “cardholder not present” (CNP) transactions, these purchases are usually carried out over the phone or online, but can also occur in a couple of other situations. Let's take a closer look.

Phone payments provide a quick and easy way to complete a transaction. To pay by phone, the customer simply needs to provide their card details to the merchant, who will then process the payment using the card terminal. The process is incredibly straightforward and is a remarkably convenient way for customers to pay for goods and services away from the store if their chosen retailer is yet to set up an ecommerce site.

Online payments have quickly become the preferred way to pay for goods and services in most modern societies. Not only does this provide customers with a simple and secure way to pay, it also allows businesses to receive payments quickly, easily and around the clock. Here are just a few reasons why online payments are so essential in today's world:

  • Convenience: customers can pay for goods and services in a way that's most convenient for them, whether that's over the phone or online
  • Speed: transactions are completed quickly and easily, without the need to fumble with change or cards
  • Security: remote payments are incredibly secure, thanks to state-of-the-art technology that protects both customers and businesses alike
  • 24/7 payments: no matter the time, customers can complete their purchases at a time to suit their schedules and routines

In-app payments are another form of digital commerce, carried out via mobiles or tablets, that allow customers to pay for goods and services through a store's app. In-app payments are handy for customers as they can make quick and easy purchases without having to leave the app, which is also good news for your cart abandonment metrics — the less friction and fewer distractions, the better. This type of payment is also extremely secure, as customers can only make payments if they have the correct authentication credentials.

Mail order payments are a type of remote payment where the customer completes their purchase by sending a cheque or money order to the merchant. This type of payment is often used for transactions that are too large to be completed over the phone or online, but in a world where those limits are all but gone, mail orders have more or less followed suit.

Recurring payments and subscriptions can also be considered 'remote' as they are, on the whole, contactless. The initial set up may or may not be conducted remotely, but physical contact is not required for subsequent billing.

And there's even more good news as, generally speaking, contactless payments carry a shorter processing time than traditional card payments. So, if you'd like to know more about giving your business a boost with remote payments or have any questions for us, feel free to get in touch.


John Ford


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