The name already suggests how prepayments work. Online shoppers transfer the money for their order upfront. Only when the respective amount has been received does the retailer then send out the products. This prevents payment defaults. Some shoppers prefer prepayments, as they then do not have to send any sensitive bank details to the online shop.
Accepting prepayments allows you to minimise the risk of payment defaults and fraud.
There are no transaction charges for prepayments.
You do not save any sensitive bank details or personal information of your shoppers.