Direct debit
Direct debit is another popular and well-established payment method. Due to its relatively low transaction fees and planning security, this has proven to be a particularly attractive option for online trading. Direct debit to an online shop is a convenient option for buyers; the direct debit authority withdraws funds directly from the customer’s bank account, usually as soon as the goods have been sent off. Customers can also report any unauthorized transactions to their bank and receive a refund. This offers solid protection against dubious companies and fraudsters. However, this payment form can prove risky. When paying by direct debit, users have to disclose their account number and sort code as well as the name of their bank, making themselves vulnerable to data theft and phishing.
This is why online store owners should ensure that private customers are only required to transfer their data over a secure site. The security protocol, ‘secure socket layer’ (SSL) offers reliable protection. In order to prevent credit losses through unsecured bank accounts, external services, such as Klarna, can offer a credit rating; keep in mind, though, that using this service will result in additional transaction fees.