With the world economy adapting to the electronic method of payment, online transactions have become more viable. Online transactions are the mode of transactions that allow paying through a merchant using payment gateways. Every transaction is dependent on these payment gateways. These gateways are linked with the banks and card networks that charge for provided services. Thus online transactions, being a flexible mode of payment, also bring a possibility of irregular charges depending on the payment gateway fees.
Here are a few tips on how to avoid extra charges during online transactions
Choosing an E-Payment mode
Different electronic payment modes have different charges. The most popular payment modes are
- Credit/Debit cards
- Mobile Wallets
- Payments Bank
These different modes of payment provide almost the same service of transferring or paying an amount of money but a different rate of service taxes. It is suggested to get a good look at the service costs before making payments to avoid additional fees.
Cost of account maintenance
A bank account linked with online banking facilities needs maintenance once in a while. To keep up with the vast upgrading technology, bank accounts need to be updated and maintained with proper security creating a safe platform for online transactions. To provide these services, banks charge a specific amount of money and it’s suggested to consult with the bank for any extra cost.
Minimal SMS alerts
Online transactions have always been working with SMS alerts and notifications. But the banks provide this SMS service with an additional fee. Though this can be avoided when choosing the options on how to get notified during transactions. One can choose emails over SMS alerts to avoid these extra charges or can choose minimal SMS alerts to keep the charges minimal.
Keeping a Minimum Balance
You need to maintain a minimum balance in the account you are using for online transactions. If not, several banks have chosen to charge a precise amount of money as it is seen that most of the banks try to maintain an average balance in saving accounts. These minimum balance requirements and additional charges both vary from bank to bank. Keep a track of your bank balance to avoid any additional charges in future.
For hassle-free online transactions, third-party payment services are suggested as the better options. They provide an extra layer of security. They have different payment gateway fees and you can avoid additional payment gateway fees by choosing the right payment service and keeping it as minimal as possible. Sometimes, it also depends on the gateway to maintain the minimal payment gateway fees. It will be wise to go through all the services and gateways before doing online transactions.
Moreover, while selecting the payment method, debit and credit cards have some additional charges. Depending on the bank and brands of cards, those additional fees are subject to change. Debit cards cost less for timely charges but credit cards need a high maintenance cost (since it comes with better security as it does not share any bank details with the merchant site). Furthermore, sometimes for faster fund transfer, a wire transfer can be used which comes with an extra service cost. It can be avoided by simply using online banking or transfer via the bank’s app. Lastly, if anyone wants to close an online bank account, he may have to pay an early-account-closure fee and to avoid such additional fees, it is better to keep your account for a few months, likely 3-6 months.