Payment methods in e-commerce: which should you offer?
Cards, bank transfer, cash on delivery and instalments. The commission, setup effort and customer impact of each.
If a customer has reached the payment step, they've decided to buy. A sale lost because they couldn't find their method is an entirely preventable loss.
Card payments
The backbone of online retail. There are two routes:
Your bank's merchant account. Commission is usually lower, but there's an application, paperwork and an approval process. It requires a registered company.
A payment provider (Stripe, iyzico, PayTR and similar). Setup is fast, one integration brings support for many banks, and instalment handling is simple. In exchange the commission is slightly higher.
For a new store a payment provider usually makes more sense; moving to a bank account can be considered once volume grows.
Instalments
In some markets instalments directly influence the buying decision. Above a certain price point, a store without an instalment option is at a clear disadvantage.
Watch out: will you absorb the instalment commission or pass it to the customer? Decide this up front and price your products accordingly.
Bank transfer
There's no commission, making it the most profitable method. But it has two problems: the customer may forget to pay, and you have to confirm orders manually.
It can be encouraged with a discount: "3% off when you pay by transfer" saves you commission and gives the customer an advantage.
Cash on delivery
It removes the trust problem and raises conversion for new stores. In exchange, return rates rise and the courier charges extra.
On small baskets it can lose money; setting a minimum order value is sensible.
What should you offer?
Minimum: cards (with instalments where relevant) + bank transfer.
If you're a new and unknown brand, add cash on delivery too — until you build trust it raises conversion meaningfully.
Don't forget
- Show which cards you accept on the payment page, with logos.
- A merchant account application requires an SSL certificate and published terms of sale.
- Place a test order. With a real card and a real amount. You'll refund it, but you'll know the flow works.
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