Skip to main content

ECOMMERCE PAYMENT PROCESSING: HOW IT WORKS & TOP PAYMENT PROCESSORS

 Payment is a vital part of eCommerce. With streamlined eCommerce payment processing, you can deliver a smooth and secure checkout experience to your customers. This will help you lower your costs, reduce shopping cart abandonment, and improve the customer experience. Let’s find out in this article how eCommerce payment processing works and what the best payment solution providers are.

What is Ecommerce payment processing?

Due to the extensive usage of internet-based shopping and banking, eCommerce payment processing has grown in popularity. It is the process of accepting electronic payments for online transactions. 

Although each eCommerce business is different, the objective should be the same: to make the online checkout experience as simple as possible while still ensuring secure payment transactions.

There are three elements of eCommerce payment processing, including:

  • Payment gateway: an online payment service integrated into the eCommerce platform through which customers can make payments for online purchases.
  • Payment processor: a company that communicates with and put money in your merchant account on behalf of customers.
  • Merchants account: It is the gateway that talks to your bank. The store’s gateway connects to the merchant account and it charges the customer’s payment information directly.

Payment Gateway vs Payment Processor

There is some misunderstanding about the payment gateway and payment processor. Both two elements attach and run together to help users in carrying out the payment process. However, they are different and have specific functions. 

Payment Processor

Payment processors handle the actual money transactions like taking the customer’s money and crediting you. A payment processor acts as an intermediary between your store and your merchant account. 

Payment processors provide three main functions: 

  • Transmit the payment data between the customer’s bank and the merchant’s bank.
  • Provide merchants with the physical equipment needed to accept card-based transactions.
  • Help you create a merchant account by yourself or collaborate with third-party merchant services providers.

To make it easy to understand, I will give you an example. When a customer buys a shirt from your store, he chooses to pay using his stored credit card. After the customer fills in his payment information on the store’s website, the store is actually charging that credit to his account. The store notifies the merchant’s gateway that the charge was processed. The merchant’s gateway sends information to the payment processor to set up the payment in your merchant account. The payment processor then credits the merchant account, and the merchant now has money that comes from that stored credit card. 

Payment Gateway

A payment gateway is the most common interface between your website and a payment processor. It is what you use to get customer data from your website to your payment processor. They are the payment methods customers see on your website’s checkout page, such as PayPal, Stripes, Opayo, and more.

Payment gateways provide two main functions: 

  • Take the customer payment data stored on your site and send the data directly to the payment processor.
  • Accept payment information directly from the payment processor without involving your store’s website. 

How does eCommerce payment processing work?

Step 1: Open the payment gateway

Whether customers are buying a present, paying a bill, or making an online donation, they begin an eCommerce transaction by entering their credit or debit card details at the checkout.

Step 2: Communicate to the payment processor

The encrypted payment details are sent to the payment processor via the payment gateway once they click the button to submit the information. 

Read more: https://magenest.com/en/ecommerce-payment-processing/

Comments

Post a Comment

Popular posts from this blog

TOP 7 ECOMMERCE PLATFORMS TO CONSIDER IN 2023

The last few years have witnessed the rise of the eCommerce platform with tons of features and look that suit each business’s requirements for   eCommerce websites . An eCommerce platform makes it possible for businesses to reach customers in online channels, hence helping increase the market size of the businesses.  While traditional eCommerce software is costly, not scalable, difficult to work with, and time-consuming considering customization and integration with other systems, the eCommerce platform is a better solution for creating relevant, engaging, and personalized online experiences. Among hundreds of eCommerce websites, you have to pick one that can decide the future of your business. In this article, we’ll explore 7 of the best eCommerce platforms and also cover their features, pros, cons, and whom they’re recommended for most, so take a look below, you can have all the key details and see which is a perfect fit for your unique business needs. 7 Best eCommerce platf...
Post a Comment
Read more

HONEST MAGENTO 2 REVIEW FOR ALL ECOMMERCE MERCHANTS

Ecommerce has had a significant impact on the way businesses do business. Nowadays, you can do the majority of your business tasks with a few clicks of the mouse or a few taps on your mobile device. While there are many big players in e-commerce or e-business, Magento 2 has been the front runner in the online business world – all due to the number of good things it offers. However, at some point, the average person is going to hit a wall. In today’s article, we’re going to focus on compiling a list of Magento 2 reviews so that you can learn everything about the platform from its background to key features, pros, and cons and decide whether you’d want Magneto for your e-commerce or not. What is Magento 2 platform? For online retailers, Magento is the most popular e-commerce platform. It is a high-performance, scalable solution with robust out-of-the-box capabilities and a big community of developers who are constantly adding new features to the platform. Magento 2 is the compan...
Post a Comment
Read more

HOW TO JOIN TABLES PROGRAMMATICALLY IN MAGENTO 2

Today we talk about How to join tables programmatically in Magento 2. Sometimes you need to get join collection with product collection data or category collection data or order collection or custom table collection. In order to make you do that with ease, the developer team from Magenest recommends the topic join tables in Magento2. Here we go. How to join tables in SQL? A SQL Join statement is used to combine data or rows from two or more tables based on a common field between them. Different types of Joins are: INNER JOIN : Returns records that have matching values in both tables. LEFT JOIN : Returns all records from the left table, and the matched records from the right table. RIGHT JOIN : Returns all records from the right table, and the matched records from the left table. FULL JOIN : Returns all records from both tables. ( we don’t use this much) For this sample, we have the following tables: Director_id Name 1 Magenest director 2 Magenest 3 Son Tung 4 Cris 5 Magento2 Magenest_d...
Post a Comment
Read more