Unlike the number of eCommerce websites in the digital world, there were minimal payment provider solutions in the market. This restricted the use of payment services providing solutions in the global online business market. Fortunately, the digital influence and introduction to digital commerce have changed several things.
Nowadays, setting up an online payment system, integrating it into an app or website is no longer a hassle. Instead, it comes under the necessary factors for an eCommerce website. Many types of research show that digital wallets accounted for more than 45% of global eCommerce payments initiated. This ended up making mobile wallets and online payment processes the most preferred way of processing transactions.
What is an online payment system?
An online payment process is a secured gateway or software that interacts between two interfaces of one eCommerce platform. The two interfaces are – website’s backend and the customer’s mode of payment. Generally, customers use credit cards, debit cards, bank accounts, internet banking options, and gift cards to initiate online transactions.
Some crucial factors to discuss when hiring a payment gateway solution provider for your venture –
- What is going to be the overall service cost?
- What are the standard features infused in the payment solution? Will it have fraud security, virtual terminals, etc.?
- Does the online payment solution support online stores and different devices?
An eCommerce payment solution – discussed in detail
Such software or solutions enable a secured transaction or money transfer using credit or debit cards the most. The experts at HPS-Worldwide.com prefer going for a payment solution that takes minimum time to interact with the financial institution, processes the transactions, and takes the consumer back to the website’s page in seconds. When practicing it for real, people often see it as a quick and automated process, but several techniques run in the backend to move funds securely when you wake up to the realities.
Let’s get into its processing
An online transaction is more than verifying the device via OTP (one time password) and confirming the transaction at the last checkpoint. It encompasses a series of steps running in the backend. It includes –
Step 1 – The payment process begins as soon as the customer shows interest in an item listed over the eCommerce website.
Step 2 – The web browser uses and encodes the received data to send it to the merchant’s web server. This process takes place in seconds.
Step 3 – Now, the payment gateway sends the crucial transaction data to the payment processor solution or software. The details are sent to the merchant’s acquiring financial institution.
Step 4 – The payment gateway sends transaction details to the card affiliation for confirmation.
Step 5 – The bank receives a request for credit card payment “approves” or “declines” to proceed.
Step 6 – Payment gateway solution sends an OTP to receive confirmation from the customer’s end to close the transaction.
Takeaway
Understanding the complete business processes and requirements makes it hard to choose the most suitable payment provider solution. Having a reliable payment provider by your side leaves a positive impact on the business in many ways.