Across the Board

Blog on e-business and online payments.

Which payment model should you choose for your company?

It’s very important to choose a proper business model at the very beginning of your online payment fun. Your success depends on the method you select. Fortunately there are a few possibilities you get to choose from. Each one is assigned to a different online business type.

Which one should I choose?


At the beginning I’ll try to show you the basic and most common mechanism. If you provide one time sales, this method is for you! It’s very simple and safe and there’s a smaller risk of chargebacks. Your client makes a payment, providing all necessary information to complete the transaction (card number, CVV etc.). If he wants to buy any new stuff in the future, he the whole process will be repeated (which includes providing all the cardholder’s information again).


Recurring transactions are the next method. It’s a perfect option when selling goods which require regular payments for using them. Hosting services are an excellent example – a client is obliged to pay for those services monthly. A customer makes the purchase using his credit card and has to provide all necessary credit card’s data during the first transaction. All the following transactions are created automatically, based on the first transaction. The client doesn’t have to remember to make the payment manually every month. Thanks to this, he saves lot of time and trouble.



Another business model includes recurring transactions based on credit card authorization. This solution is used mainly in trial products selling. First, the client receives your product without paying anything. He only has to authorize his credit card in the payment system, but no cash is taken from his account. After the trial version expires, automatic rebilling will process the first transaction based on the previously made authorization.

Dawid doesn't really look like a regular programmer should. He's always smiling and eating candy, no matter whether he's coding hard, designing or supporting. One thing is for sure - if he's not by his desk, he's in the kitchen ;) But after work Dawid is sometimes a bit concious stricken, so it's quite easy to meet him jogging in the local park.

Are you a business looking for a payment processor?

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