Payment systems

Everybody faced with the need to transfer funds to the relative, business partner, friend or pay for Internet purchase. As for me by the nature of my activity I have to transfer my funds from one bank account or electronic wallet to the other. I have to replenish my account very often, as well as withdraw my profit. Of course it is possible to use old method – bank wire to transfer funds from one account to the other, however I don’t like the idea to pay them big commission for transfer and wait several days until confirmation that funds were credited to my account is received. Anyway after examining banks’ schemes on funds transfer I made a conclusion that it is more reasonable to use payments systems. Great, that a lot of new systems were created last years.

I want to share my experience of payment systems usage with you.

Web Money

Let’s start with the most popular and simple system – Web Money. As a person who values my time I was attracted by the simplicity and speed of registration. There are neither extra forms and documents, nor notarized ID copies. It turns out that while registration I can write anything I want in the field “passport data”. Nobody checks anything. I really like this oversight because the transfer can be made absolutely anonymous.

Now let’s move directly to transfers. Web Money offers its clients the opportunity to transfer funds in the main currencies from and to any accounts without limits. Commission for transfer is fixed – 0,8% of transaction amount. It is not worth speaking about the speed because all main players on payment systems’ market execute transaction instantly. The only disadvantage is the necessarity to download special clients’ terminal WM Keeper. Also I want to mention one limit – it is impossible to replenish wallet via credit card.

PayPal

At PayPal web-site it is said that this payment system gives opportunity to accept and send payments at web-sites, auction, via e-mail or cell phone with Internet access. However this is accessible only for citizens of The New World and in some parts of The Old World. It should be mentioned that this is American system, it is rather old and conservative. For instance, if you have opened an account and didn’t verify it with credit card you can not withdraw funds from it. In PayPal number of your account is your e-mail address. Addresses used when transfer can be deleted or added. For transaction they take 1% of transaction amount.

It is possible to transfer any sum, recipient of payment can be a person who does not have PayPal account. E-mail is sent to the recipient, who follows link of the payment system and at company’s web-site makes payment confirmation. Replenishing of the PayPal account is made via credit card or bank wire in order to verify that you are a real person.

E-Gold

This system is different from others. Making a transaction you are buying precious metals (Gold, silver, platinum). Your money is on your account in grams or kilograms of precious metals. Withdrawing funds you made inverse operation. It should be mentioned that while your funds are at E-Gold account the real price of your investment may rise or fall. The transfer between wallet WM and E-Gold is rather simple, that gives more opportunities for management of your own funds. Advantages of this system are the following:

1. democratic approach;
2. anonymous and simple registration;
3. partnership relations with other payment systems;
4. juridical liberality.

Commission something about 1 %, the system takes not more than 50 US cents.

Moneybookers

Moneybookers allows client who has e-mail to send and receive money on-line using e-mail. As the system is English, you have to remember that all the transactions of your money are regulated by the Great Britain legislation. Currency of the account you can choose while registration. Advantages: there is no need to setup special software, all operations with account and funds can be carried out at Moneybookers website. 

For getting access to my account I needed to enter only e-mail, password and image verification. As soon as I transferred some money my recipient received an e-mail about money has been transferred to his account. Following the link pointed in e-mail recipient enter the system and immediately money enters his account. Since the moment payment is considered as finished. If recipient do not claim the payment during 14 days, money is transferred to my account back. So everything is simple. Ohh, yehh… Transaction fee is taken off from sender. It is 1 % of payment amount, but no more than 0.5 euro.

Liberty Reserve

History of Liberty Reserve is connected with the rules toughening of E-Gold system usage since 2007 in order that exculpate accusation of USA authorities about money laundering. It is manifested particularly in blocking enter the account through the public proxy and frozen accounts of some HYIPs. In HYIP traders’ community active search for alternative payment instruments began. All of them wanted to find payment system that meets the requirements of anonymity, reversibility of transactions and independence from threatening American justice.

In my opinion Liberty Reserve meets all these requirements. I have an impression that location of the main office in Costa Rica but not in the USA is the pride for the owners of this system. Anyway at the page with comparative description of Liberty Reserve and other payment systems the fact of Liberty Reserve activity independent from the USA justice was pointed out especially.

From users’ point of view there is no claims to this payment system. And from the non-users’ point of view I can point out the seriousness in accounts defense.

As disadvantage I would say impossibility of depositing and withdrawal funds from/to banks and credit card. All deposit/withdrawal transactions are available through exchangers. The list of exchangers are given at Liberty Reserve website.

LiqPay

In the end the latest of my experience of using payment systems. I was lucky to try this system in practice ahead of the game. This system allows sending money from the credit card Visa or Master Card to the virtual account in LiqPay system, tied to the mobile number and vice-versa. After that money can be transferred to another mobile, withdrew from LiqPay system to your credit card back and left in the account and used it later. LiqPay is useful if you want to transfer money to the person you know only mobile number of. It does not matter whether this person is registered in the system or not. Short message will be sent to him with offer to receive money at the LiqPay website. Enter the website he/she can transfer it to his/her credit card or send it to another mobile.

Moreover I tried this system to pay for goods in Internet. And it really solves the problem of micro payments in Internet. Min amount for transaction is 0.01 USD, max – 2500 USD.

In my opinion LiqPay has a good future.

Opportunity of withdrawing funds to the credit card, speed of transactions executing and possibility of micro transaction executing proves my optimism.

Resuming above I can note that every payment system has its advantages and disadvantages. Somebody is concerned about anonymity and liberality of control; somebody prefers 100 % of protection and reliability. I always value time and comfort. In due time I used all these systems and once banking system. So my choice as follower of the intraday trading on Forex – WebMoney and LiqPay. But everybody decides him/herself. Choice of payments system is huge.

The article is added by Alexey Badianov,
specialist in finance