Due to the development of technology, people are daily faced with various forms of payment. It has been a long time ago when people were using cash transactions and bank payment at the counter. Nowadays, there are a variety of possible payment methods, used among people worldwide both globally and locally. In this article, we will provide you information on different payment methods in UK, USA and in other countries in the world, as well as the list of most popular payment methods. The development of online payment systems has enabled people to invest their money without any difficulties deposits with the binary options brokers. We will explain in more details what kind of payment methods exist in the world and which ones are most commonly used.
Binary options traders worldwide use a wide range of possible payment methods; debit and credit cards, bank wire transfer and e-wallet. More information will be provided regarding online payment methods in binary options industry and its wide spectrum of companies, which offer such payment type. E-commerce payment system is actually an electronic payment for any online transaction done. Binary options brokers, who want to be present in the global market, should have in mind many advantages that online payment methods offers. This will greatly speed up and ease the payment process between customers and businesses.
Binary Options – Debit and Credit Card Payment
Debit card, also known as a bank card is a card with which the cardholder makes payments directly from the bank account. Use of debit cards is very popular payment type, which binary options traders use instead cash payments. Main difference from credit card is that when withdrawing money, one is directly taken from the account and not upon due date later on. Maestro is the most used debit card, especially in Europe.
On the other hand, credit cards are issued by local banks, where cardholder has to pay the amount in full once a month at the chosen due date. With credit cards it is also possible to withdraw funds through ATMs. Some of these credit cards are: Mastercard, Visa, American Express etc. Mastercard and Visa are mostly popular in European countries. They don’t need too much introduction since everyone knows how to use them. Although there are another online deposit and payment methods, credit cards are still considered to be the world’s most popular payment option. This is mostly because people worldwide are for years now, used to the credit cards payment and most important, satisfied with this payment type. In binary options world, card payment in the most used deposit and payment method and binary traders use a variety of possible debit and credit card types.
How is it that online payment methods recorded increasing popularity? We believe that one of the key elements of online payment system is the fact it is the easiest and quickest way to make payments through different locations. This is especially visible in Europe because not all countries have the same level of popularity in payment options. In countries like UK, France, Germany, Italy and Spain paying with credit cards is still the most used payment method.
General use of payment methods was:
- UK – 75% debit/credit cards, 20% PayPal
- France – 57% debit/credit cards, 25% PayPal
- Germany – 46% bank wire, 26% other and 9% debit/credit cards
- Italy – 73% debit/credit cards, 18% PayPal
- Spain – 37% debit/credit cards, 23% cash
Binary Options – Bank Wire Transfer
Wire Transfer is a online payment method from one bank to the another bank in the same day. Many binary options traders prefer to use bank wire in order to deposit their money with the chosen binary options broker. Bank wire is the slowest and probably the most complicated way to deposit in binary options. It can also carry significant banking fees. Usually brokers do not charge fees when depositing via bank wire, however, many brokers require fees when withdrawing money via bank wire. It may take several days until the bank processes the requests and the money lands on the trading account with the binary broker.
For you to wire money, you need to submit several important information, such as bank name and SWIFT number, account number, bank address and phone number. In accordance with their business, banks charge customers with a certain fee, depending on is it coming or outgoing wire transfer. For coming transfer, fee is $13, while for outgoing is $25 and international transfers $40.
E-wallet – the fastest payment method in binary options
In addition to card payment and bank wire transfer, another additional online payment method appeared among customers, who prefer online payment system. Let us introduce you to E-wallet. E-wallet is among the most popular and easiest ways for online payment. Idea is to create virtual account, where one will fill up with money and afterwards, it is possible to make payment in stores and online businesses. Nowadays, not everything is about debit and credit cards. E-wallet payment is very popular both in Europe and USA. There is a variety of e-wallet providers who offer their services to the people worldwide. Further in this article, we will handle more closely what are the most popular types of this payment method.
In online business, e-wallets are the most common choice. Payment is easy and secure due the fact they use a highly developed technology and top notch security system. You are probably asking yourself. where to begin? First, you have to choose the best suitable online payment provider. To be able to have e-wallet account, one must sign in. Log in is a simple process where in just few steps, account is created. Once you are logged in, you don’t have to insert credit card details for every transaction made.
This way, online payment is simplified and quick. With some e-wallet provider, there is no needed minimum amount to be paid, and some require very low amount, such as $10. This online payments method requires from the payment provider to set up an account in the bank and then and then those services offer to their customers. It is provider’s choice to have a possibility of card payments on their account. If they support credit card payments, it is required to have a so called, merchant account, opened in the acquiring bank. Basically, these online payment providers earn money on enabling e-business to use their merchant account.
The world’s most popular e-wallet providers are: PayPal, Skrill Moneybookers and Neteller. There is also a wide range of other providers, but there are more localized (different European countries). Above mentioned companies are well known among people all around the world.
PayPal is probably the most popular online payment method in the world and very often used in binary options trading. Traders can deposit and withdraw their money through PayPal. It is considered to be a safe way for an online payment. Founded back in 1998, PayPal offers customers several ways to perform payment; such as bank accounts, credit cards and PayPal Smart Connect. In a short period of time, they achieved great popularity and are available in 190 countries with 24 different currencies. PayPal payment is secure, because of its Buyer Protection. Registration process is quick and easy and requires several information to be submitted: credit card details, proof of identity with username and password. It is also possible to have PayPal Mastercard, which can be used in online shopping. There is no fee for open a PayPal account. However, in personal payments, in US fee is charged 2,9% + $0,30 of the sent amount for those who use credit card. Same thing is with receiving money. International payment is available and fee depends on the exchange rate of a particular country. With withdrawal money, one can submit withdrawal request with no fee from PayPal account to the chosen bank account, without the check, otherwise fee is $1.50. PayPal is especially popular in USA, but also in Europe. Nowadays, a lot of new payment providers appeared, so PayPal isn’t the only one anymore.
Back in 2002, moneybookers.com domain started with online payment method. In 2011, they rebrand their service as Skrill. Up till now, Skrill is available in 200 countries with 40 different currencies covered. Skrill supports debit and credit cards. To open a Skrill account, you have register with email and provide certain personal data and afterwards activate the account. Once logged in, you can see the account balance and when you send money, it will arrive instantly. The basic fee is only 1%, maximum $10. For sending money internationally, exchange rate usually start around 2.99%. Customers can choose, whether they wish to spend the money or withdraw it. It is possible to access the money via Skrill Prepaid Mastercard or the money will arrive on the bank account. With their Mastercard, customers can use over 1.9 million ATMs around the world.
Initially, Skrill became very popular in the gaming world and now is one of the leading e-wallet payment methods worldwide. Reason why customers use Skrill payment is because of its simplicity, low commission fees and immediate transfer of funds. This e-wallet is very popular and often used deposit and payment method in binary options industry. Majority of binary brokers offer their registered traders to deposit and withdraw funds in binary options via Skrill Moneybookers. Few binary options brokers who offer Skrill payment method are:
As Skrill’s rival, Neteller is also considered to be one of the leading online payment providers. They provide customers with Neteller Mastercard for quick payments and possibility to withdraw money on ATMs worldwide. For money transfer, there is no fee and for Mastercard, fee is 4 EUR on ATMs. For currency conversion, 2.95% fee is required. Founded in Canada, Neteller is also gain popularity in the world of online casinos and later on, people worldwide started to use this company for their personal payments.
In the last several years, binary options industry appeared on the financial market as the new online type of investment. While choosing the best suitable binary options broker, it is important to be aware of potential risk, when we talk about online business. This is why security is the main goal of all reliable binary options brokers. Binary brokers, such as 24option, IQ Option etc. offer their registered traders safe and high developed trading platform, where they can without any fear deposit and withdraw money. Majority of binary brokers operate internationally and for this reason they want to provide the best and the quickest way for traders to receive their funds. So in this industry, popularity of e-wallets is widespread. As mentioned above, there are different possible online payment methods, from credit card payment and bank wire to the e-wallets. The last one is the most popular and most used, due to its simplicity and speed. This payment system is well known and used among traders worldwide, who on this way deposit money to able to trade with binary options and later on withdraw their funds.
Withdrawal in Binary Options
Withdrawals are always a topic that is interesting to customers since it is the moment when they get to take their profits home. Many binary options brokers do not charge fees for withdrawals, however, some of them require percentage based fees for withdrawing to credit cards or e-wallets. Most brokers, however, charge fees when traders withdraw their funds via bank wire. These fees range from zero to $30, while only in rare cases does one encounter huge fees that reach $40 or $50 per request. This is used by brokers to cover their own banking expenses. Since many brokers offer free withdrawals with some advanced account types, there is a way for the customer to avoid these fees if they deposit more with such brokers. Some other binary brokers guarantee one free withdrawal per month. So there is a way to escape paying the fee even with the bank wire withdrawals. Entire process of withdrawing funds is usually up to 3 business days, from submitted form to the money visible on the account and all the business is done securely over the Internet. Although these e-wallet providers do charge small fee amount, traders benefit from such payment option, because it gives them far more advantages, such as real time money transfer and simplicity.
Prefered Online Payment Methods in the USA and Europe
Years ago, In USA people carried out their payments with credit cards. But lately with appearance of e-wallets, things have changed. Credit cards stopped being the most common payment option and PayPal became top e-wallet provider. In survey conducted in 2014, 79% of respondents said they are using PayPal, while the rest uses other e-wallet providers. On the other hand, Europe is a completely different market. In Europe people use different payment methods; debit and credit card, bank wire transfer and also e-wallets. Unlike situation in the USA, Europe is diverse market and most payment methods are localized per country.
Binary Options Payment Methods in UK
UK is the Europe’s largest and most advanced economy, in regards with online payment methods. In the United Kingdom and Ireland, almost half of online transactions are made via credit cards and debit cards also. PayPal is the third choice of online payment methods. It is considered that in UK there are approx. 23 million PayPal accounts. Other alternatives aren’t spread much so we can say that those three methods hold very high ranking. In Ireland, Irish debit card Laser is quite popular among customers.
Binary Options Payment Methods in Germany
In Germany, prefered payment method is bank transfer. 58% of Germans uses this payment type, while 35% use credit card payment (Visa, Mastercard and American Express). E-wallets are also used, but aren’t so popular as previous mentioned payment types. Germans use ELV, PayPal, Sofort Uberweisung, GiroPay and RatePay, as alternatives ELV is German direct debit card GiroPay a payment method, where consumers use direct online bank transfers. Less than 10% of Germans use credit cards. For more on binary options in Germany, visit our German site.
Binary Options Payment Methods in France
In France, debit and credit card payment is the most popular deposit and payment method. 57% French use Carte Bleue, Mastercard, Visa and American Express. Carte Bleue is the most used card in France; a debit card which allows online transactions without required permission of cardholder’s bank. Other alternative payment methods are: PayPal, bank wire transfer, uCash and Allopass (payment via phone and SMS).
Binary Options Payment Methods in Spain
Just like in France, debit and credit cards (Visa and Mastercard) are also first choice in online payment system with 97%. Other alternative methods are Allopass, PayPal and Teleingreso (popular in online gambling industry with more than 3000 ATMs).
Binary Options Payment Methods in Italy
Italians prefer credit card payment as well as PayPal. About 73% use credit cards, while 18% PayPal. The most popular credit cards are: Mastercard, Visa, Carta Si, Poste Pay, Diners Cloub and American Express.
Binary Options Payment Methods in Russia
In Russia, there are several different popular payment methods. Russian use QIWI, Yandex Money, WebMoney and also credit cards. But majority Russians prefer e-wallet payment methods due to its simplicity. Binary options brokers offer Russians a variety of different e-wallet providers, such as Yandex.Money, WebMoney, Qiwi, Moneta.ru, PayPal, Z-Payment, Skrill Moneybookers and RBK Money.
Binary Options Payment Methods in Denmark/Sweden/Finland
Scandinavians prefer credit cards (Visa and Mastercard) as their favourite and most popular payment method. In Finland and Sweden, 35% of people use bank wire, besides credit cards. In Denmark, especially popular payment method is Dankort. Dankort is an international debit Visa card, very popular payment method in Denmark. With this card, you actually get two cards in one (both debit and credit card). In Denmark, one can use it as ordinary debit card, while internationally, people can withdraw money in banks and ATMs. Abroad, it is possible to choose between Danish Kroner or local currency. Another e-commerce company is Klarna, established in Sweden. Approx. 20% Swedes use Klarna as their payment method. It is also used in Finland, Norway, Denmark, Netherlands, Germany and Austria.
Binary Options Payment Methods in Benelux Countries
The Benelux countries are consisted of three countries (Belgium, Netherlands and Luxembourg) and each one of them has it own prefered payment system. In the Netherlands, people mostly use iDEAL, (operating since 2005) as their main payment system, based on online banking. iDEAL enables customers to make purchase using direct online bank account transfers. Since 2005, they have more than 400 million transactions. In Belgium, the most popular methods are credit cards and bank wire transfers, while in Luxembourg are also credit cards (Mastercard, Visa, American Express and JCB).