Insights eCommerce

What is payment processing and how are eCommerce payments received?

The World of eCommerce has and continues to outpace its predecessor in the form of brick and mortar stores.

But despite the obvious benefits that selling online brings, for many the puzzle around payment processing and how eCommerce payments are received remains.

For new businesses, building their online stores means that they are opening up their operation to a vast world of potential new customers. And with 86% of UK purchases having been made online in 2019, businesses without an online presence should now be asking when, rather than why we’re taking the business online.

A key fundamental in establishing the store is the payment processing metrics and thankfully, understanding the basics of this need not be a complicated matter, after all, your customers are entrusting their financial and personal information to you and so having a base understanding of how it works should be essential.

Put simply the basics of payment processing boil down to three distinct areas:

  • The Payment Gateway – The gateway allows for the customers’ card to be charged on-site and connects the payment request with the processor and ultimately with the provider (e.g. PayPal, Visa and Mastercard).
  • The Payment Processor – The processor receives the payment request and approves it, acting as the middle-man between the website and the customers’ bank.
  • The Merchant Account – Once the payment is approved, the funds are deposited into the merchant account ahead of being released.

Throughout each phase of the payment processing journey various checks and validating services come into play before passing onto the next, in turn checking the legitimacy of the customer, the card and the availability of the funds. Above all else, these steps ensure this information gathered is kept safe and your customers protected.

Through direct integrations with your website the payment processing systems will run concurrently with the site, so the customer can remain on-site, and checkout with far fewer clicks, creating a simple and effective user experience that reduces basket abandonment rates.

Depending on the system you use be it a popular shopping cart like Shopify, Magento, WooCommerce or OpenCart, Mosaic can integrate with any web service API, marketplace or third-party software. The purchase information is then passed to us for stock information and our award-winning order fulfilment services.

For more information on payment processing, integrations with Elovate and how our leading fulfilment solutions could help take your organisation to the next level, contact us today.

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