Self-study work

SAMARKAND BRANCH OF THE TASHKENT UNIVERSITY OF INFORMATION TECHNOLOGIES NAMED AFTER STUDENT: QUDRATOV KOMRON

MUHAMMAD AL-KHWARIZMI |

GROUP:PI-22-12

SELF-STUDY WORK

Online Transactions
An online transaction is nothing, but an online payment method through which customers/users can pay through electronic fund transfer. There are multiple online payment service providers such as PayPal, Stripe, etc. that allow businesses to add an online payment option on their website. Online transactions are secure and protected through a password, therefore, there is less chance of fraud or errors.
If you understand what an online transaction is, we don’t need to define a transaction for you. Online transactions are an upgraded form of transaction. Now that you know what does transaction means, let’s move to the important parts of the process.

Online transactions are the easiest and fastest way to receive payments from the customer. A lot of businesses are incorporating this option to ensure customer’s feasibility. Here are a few steps that are involved in an online transaction.

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  In the first step, the customer registers on the website with their personal information. The information is secured by the business.
  
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  The customer selects the product that they like and puts it in the shopping cart. The shopping cart shows details of the products selected by the customer along with the number of products. Once it’s completed, the buyer moves to the next step of purchasing the products.
  
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  In the term step, the customer chooses an option to pay for the products. They can either opt for net banking transfer, cheque, cash on delivery, credit/debit card service, or digital cash. The customer has to enter financial information that stays protected and secured with the service provider.
  

Why Is It Necessary to Have Online Transactions Option?
Reasons You Want an Online Transaction Option
Today, every other business offers more than cash on delivery option to their clients. The first reason to do this is to provide ease to customers. With changing times, people are getting busier with their lives. Hence, online payments save clients from heavy work and allow them to pay without any hassle. Here are some reasons why every business should opt for online payment options.

Easy Money Collection
With online payments, you do not have to wait for a cheque or anything else. Online payments save you from running after clients to pay for the service or product. Furthermore, it helps in improving the cash flow and handling business expenses efficiently. With online payments, the business owner knows what they are receiving and how much they are receiving. The factor further helps with making decisions as well.

Saves Time
Online transactions save time for both merchant and customer. They take a few minutes and does not require the person to go anywhere to pay for the product. Furthermore, the merchant receives the payment in no time. Online payments are also the fastest way to pay and receive money.



Trouble-Free Automatic Bookkeeping
With online payment transactions, your account is automatically handled. Everything is done automatically and you don’t have to sit with an excel sheet to note everything that you receive. It helps in notifying the customers regarding any outstanding balance saving you a lot of time. You can also keep a note of the payments that you are taking out of your account. In short, your accountants will be extremely happy if you introduce the automatic bookkeeping option.

Prevents Fraud & Errors
Online payments further save the business from any frauds and errors. For instance, you offer subscriptions to clients – what will you normally do if there is no online payment option? Run after customers to pay their monthly or weekly fees.
With online payments, everything is done automatically. Unless your customer wishes to cut your service, they are automatically charged for the service reducing the burden on both parties. Furthermore, the financial information is encrypted, secured, and protected by the merchant to ensure clients’ safety.

No Time Barrier to Receive Payments
Cheque and a few other options have a fixed time to deliver payments, however, with online transactions, you don’t have to worry anymore. The customers can pay online at any time and the merchant can also receive the payment without any delay.
Online payments work 24/7, so you don’t have to wait to receive your payments. Furthermore, it’s also a convenience for the customers, which is every business’s top priority.