Online Card Payments

 

Online Card Payments: The Heart of Digital Commerce

In our previous article, The Evolution of Payment Systems: From Traditional to Digital, we provided a broad overview of the payment world — from traditional banking methods to online and crypto payments.

Today, we will focus on one of the greatest technological marvels of our time: online card payments.



The History of Card Payments

Card payment systems first appeared in the mid-20th century. Initially used only in certain stores, they gradually evolved into a global payment network supported by banks and financial institutions.

  • 1950s: The first card payment attempts (used locally in shops).

  • 1970s: Banks developed card infrastructures, enabling international use.

  • 1990s: With the rise of the internet, card payments became common for online shopping.

  • 2000s and beyond: Virtual POS, digital wallets, contactless payments, and API-based integrations transformed card payments into a modern system.

Today, card payments have become the cornerstone of digital commerce — for individuals, SMEs, and global corporations alike.

What Are Card Payments and How Do They Work?

  • A user obtains a card from a bank or payment provider.

  • The card acts as a digital identity for making online transactions.

  • The merchant receives payments through either a bank virtual POS or a third-party payment provider.

  • The transaction is processed through secure networks, protecting customer data while transferring the payment to the merchant.

Local and International Use

  • Local Use: For individuals and SMEs within a country, card payments ensure fast and reliable collection.

  • International Use: For companies selling globally, card payments are the simplest way to trade across currencies and geographies.

Card payments are also categorized by risk level:

  • Low Risk: Standard e-commerce (clothing, books, accessories, etc.).

  • Medium Risk: Subscription-based systems, some digital services.

  • High Risk: High-volume, international, or sector-specific industries.

Who Uses Card Payments?

  • Individuals: For everyday purchases.

  • SMEs: For online stores and service sales.

  • Large Enterprises: To manage global payment flows.

✅ Advantages

  • Fast payments with instant approvals.

  • Familiar and trusted by users.

  • Suitable for both local and international markets.

❌ Challenges

  • Obtaining a virtual POS from a bank can be difficult in some sectors.

  • Higher security requirements and fees for high-risk industries.

  • Additional charges for international transactions.

Virtual POS and Payment Providers

For businesses, there are two main options for card payments:

  1. Obtaining a virtual POS directly from banks.

  2. Working with third-party payment companies.

Both have advantages. Banks offer direct solutions, while third-party providers often provide faster setup, flexible integrations, and global support.

👉 At All Commerce LLC, together with our partners, we help clients choose the most suitable provider, while delivering infrastructure integration, API modules, and security solutions.


Card payments lie at the very heart of digital commerce. They are both the most trusted method for users and the most common way for businesses to collect payments.

👉 If you want to grow your business with card payment systems, the All Commerce LLC Software Solutions team is here with tailored solutions to fit your needs.

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