Across the Board

Blog on e-business and online payments.

Credit Card Payment vs Wire Transfer

In some countries (such as in CEE) the most popular payment method is still the wire transfer. That’s why when we are talking to customers from this region, most of them are asking about the functionalities regarding payments through this payment method.

That’s why we’ve decided to compare these two payment methods…

Wire transfer – what the payment process looks like?

Buyer is visting merchant’s website. He puts products to the shopping cart. Once he clicks on the ‘Checkout’ button, he is redirected to the payment provider’s website (sometimes this step is invisible for the buyer). He’s choosing the bank, where he has an account and clicks on some kind of ‘Buy’ button. Once he does that he’s redirected to the chosen bank’s website. He needs to log in to his bank account, approve wire transfer (often using some kind of random password from the SMS), log out from the bank account and back to merchant’s website.

Depending on the bank… sometimes after logging in to the bank account, the buyer has already filled the form to the wire transfer and sometimes he has to put all data for the wire transfer on his own (e.g. receiver’s bank account number, address, description, etc).

Credit card payment – what the payment process looks like?

Buyer is visiting merchant’s website. He puts products to the shopping cart. Once he clicks on the ‘Checkout’ button, he has to put credit card details (credit card number, name on card, expiration date, CVV/CVC) on the merchant’s website or is redirected to the payment provider’s website (where he needs to put credit card details).

Descriptors

You can set your own dedicated descriptor for credit card payments, as well as for wire transfer. How it exactly works depends on the payment provider. For instance, PayLane is able to give you a possibility to set your own dedicated descriptor for both of these payment methods.

Chargebacks

Credit cards – yes.
Wire transfer – no.

Refunds

Credit cards – yes.
Wire transfer – depends on the bank (most of them don’t have such a possibility).

Multicurrency payments

You can have it in both of these payment methods.

API / invisible payment provider

Credit cards – yes.
Wire transfer – no (even if you don’t redirect your buyer to the provider’s website, he will be able to check which PSP is going to process their payments by looking into the source code of merchant’s website).

Storing payment details

Credit cards – yes.
Wire transfer – no (storing login and password to buyer’s bank account in most cases is inconsistent with the bank’s rules; and even if you store someone’s login and password, you won’t have the possiblity to store his password to approve wire transfers – because that’s the random/unique password, which is different for each wire transfer).

Recurring payments

Credit cards – yes.
Wire transfer – no.

Single click payments / one click payments

Credit cards – yes.
Wire transfer – no.

MOTO payments

Credit cards – yes.
Wire transfer – no.

Time after which merchant is sure that the buyer has paid

Credit cards – depends on credit card (in most cases – immediately).
Wire transfer – depends on the bank (in some cases – immediately, in some cases – after a few hours, in other cases – after a few days).

Mobile payments

Credit cards – yes.
Wire transfer – depends on the bank (in most cases it’s possible, but complicated for the buyer).

Why do people use these payment methods?

Credit cards – in most cases using credit cards for payment is easy and fast; it automates future payments of the same buyer; for lots of people this payment method is much safer (thanks to chargebacks).

Wire transfer – buyer can feel safer (because he needs to log in to hi account on a familiar and trusted bank website).

Why do merchants offer these payment methods?

Credit cards – because of the popularity and possibilities.
Wire transfer – because of the popularity in some regions of the world (especially some regions of Europe).

photo source: SXC.hu

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PayLane's CEO with all kind of skills - programming, marketing, team leading and more. A movie lover and snowboard fan. @KarolZielinski

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