How to Collect Payments from Online Customers

Five Methods:Create a PayPal accountDirect deposit in your bank account from within your countryInternational SWIFT code paymentWestern Union money transferIntegrating an online payment module

Collecting payments from your online customers can be easily done in a variety of straightforward ways. You can choose one of the following options or consider offering a variety, acknowledging that customers like choice of payment.

Method 1
Create a PayPal account

PayPal is the best mode for getting payments from your Online Customers from all over the world.

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    Create an account on PayPal. You'll need to provide the following:
    • Provide an email address: You can send an invoice to your customers from the PayPal account itself with all details. Since PayPal is based on your email ID, your customer also must have an email ID. The invoice will be raised by PayPal and sent to your customer at his/her email ID.The customer can then make the payment using the credit/debit card.
    • PayPal provides buyer protection, which helps your customers to have confidence in your business.
    • Your existing bank details, like the name in which you have the bank account, bank name (check if your bank is in PayPal's list), and your bank account number.
    • Your tax ID, relevant to your country.
    • A working email ID. (Your email ID will be your PayPal account number.)
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    Expect to pay commission. For th services, PayPal charges a certain percentage of commission to receive the payment and another charge for transmitting the payment to your account. For more details, check

Method 2
Direct deposit in your bank account from within your country

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    Have the customer directly transfer the payment directly to your bank account if your customer is from your own country. For this you have to provide your customer with following details:
    • Account name
    • Name of the bank
    • Branch of your bank (if necessary in your account)
    • Account number (full internet banking account number)
    • Unique code of your bank branch
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    Determine how payment is permitted by deposit. Usually the customer can either make an online payment or can just go to the branch of your bank in his/her city and deposit the payment. However, some banks charge for over-the-counter transactions, so check with your bank to understand the area specific rules and terms. Be aware that it may be illegal to pass on over-the-counter costs to customers paying this way––read the terms and conditions of any sales site you're using or local laws.

Method 3
International SWIFT code payment

This is useful for international transactions, especially where the value is reasonably high.

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    Have the customer transfer the payment through SWIFT code. Your bank will help you in to complete details of the SWIFT code. The details are almost similar to the in-country transaction. The only difference is that you need a SWIFT Code from your bank which your customer can use to transfer the payment to your account.

Method 4
Western Union money transfer

This is not a very convenient mode, but you can use it once in a while if no other alternative works for the customer.

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    Go to the Western Union money transfer center (or any other money transferring agency). When your customer transfers the money in your favour, he/she will give you a transfer code. Use this transfer code to withdraw the money by filling out a form at a Western Union money transfer center in your town or city. You'll need:
    • The exact name of the person who has transferred the money.
    • Name of the city and country.
    • Reason for payment (in some places, business transactions are not allowed by this mode).
    • The transfer code (make sure there are no mistakes).

Method 5
Integrating an online payment module

There are many online payment modules like CC Avenue, Paisapay etc.

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    Incorporate an online payment module into your website. This module can be incorporated into your online website. Your customer can directly pay you on the website itself.
    • Agencies will charge for this service. Of late, the integration fees has vanished and only thing they charge are the transaction cost on percentage basis.
    • PayPal also provides this service. PayPal may be safer and convenient, of course the percentage charge may be slightly higher than the other agencies though. Do your homework before choosing the best agency for incorporating into your website.


  • Your local bank is the best place to can help you with these online payment options. Visit your bank manager and ask about the procedures.
  • If you are planning to run a long term and regular business from your website, integrating a payment gateway is the best option. This will keep free from getting involved in the payment collection procedure by sending bills and checking if you have received the payment. Your website designer will be able to help you develop this.


  • Online transaction are, by and large, safe these days. Gradually they are getting better every day. Still, it is vital to keep track of your payments received. Sometimes the payment gets lost in transaction. Make sure you do not lose the money and more importantly, that your customer does not as well. Take very good care of the customer.

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Categories: Finance and Business | Shopping Online