4 Safe Online Payment Methods: How to Pick a Trusted One
Safe online payment methods compared: COD, payment gateways, escrow and interbank transfer, with tips to protect buyers and sellers from fraud.
Some people are so busy that they cannot spend much time shopping. Fortunately, there are now plenty of online stores where you can shop around a busy schedule with nothing but a smartphone. But you need to watch out for the security of online transactions. Here are tips for choosing a type of online payment method safely.
Tips for Choosing an Online Payment Method
1. COD or Cash On Delivery
This payment system is very safe because the seller and buyer transact directly and agree on a meeting place. As soon as the transaction is complete, the seller hands the goods to the buyer. The advantage is that the buyer can check the condition of the goods on the spot, with no extra shipping cost.
This trading method also carries risk because the seller has to meet the buyer in person at a location. So to prevent crime, the seller needs to know what kind of place the meeting spot is. Don't agree if the buyer asks to transact somewhere deserted. Also pick a sensible time, such as working hours or when people head home from work.
2. Paying Through a Payment Gateway
A payment gateway is also a very safe way to buy and sell on e-commerce sites, working with merchant banks. Quite a few startups in Indonesia now offer payment gateway (online payment) services. Unfortunately, few people choose to use them because they fear fraud.
3. Joint Account (Escrow)
This online transaction method relies on a third party. Unlike a bank transfer, a joint account (rekening bersama, or rekber) uses a payment institution that both seller and buyer trust. The third party holds the funds for the online purchase. If the transaction fails, the third party returns 100% of the money to the buyer.
The advantage of using rekber is that it speeds up the process with no registration. Its security is also very dependable: the seller can collect the purchase price once the goods are in the buyer's hands, and the transaction can be canceled without trouble if the goods do not match what was wanted. You also don't have to puzzle over how online payment works.
4. Interbank Transfer
Another safe transaction method is interbank transfer. It is a safe way to trade as well, but buyers should check the seller's reputation first. Because fraud is common, there are cases where a buyer pays and the goods are never shipped. If a buyer sends you proof of transfer, make sure your balance has actually gone up.
If the buyer has provided proof of transfer but your balance has not increased, it is best to politely tell the customer that the payment has not come in. Don't rush to accuse the customer of trying to cheat you, because the problem may come from the bank chosen for the online payment.
You can choose any of these 4 types of online payment according to your needs and comfort. For more peace of mind when running transactions, you can use the Duitku system for various types of online payment transactions. The system is trusted and officially integrated with Bank Indonesia, the central bank.
