Re: Is There Any Registration Required For Develop An ECommerce Website?
Simply put the process really involves 2 parties, a gateway provider who takes the encryped transaction data and sends queries to the appropriate provider (visa/mastercard etc) to validate the transaction. Post validation the results are sent to your website.
The next step involves the transfer of funds from the cardholder's account to the sellers account and for this you need an account called 'merchant account' with a bank. There are hundreds of different banking companies offering merchant accounts and their fees vary considerably.
Of the different types of online payment methods the most common online mode of payment no doubt is the credit card. In order for a credit card transaction to get processed and your payment to be confirmed there are a number of steps with different parties involved which must be completed.
The first step is registration. This is done using a secure web page so the consumer's personal information is encrypted. The registration request is compiled into a format which is required by the card processing company.
The data thus formatted is transmitted to the credit card processing system also known as the payment gateway. Here the information is checked for accuracy and authenticity to continue processing the transaction. Then a request for charging the credit card is sent to the company which company manages the consumer's credit card account.
The next step is the validation of the card and the account. The credit card company sends an acknowledgement back to the card processor that the amount requested can be transferred and the card processor or payment gateway tells the user on the website wether or not the the transaction was successful. Funds transfer process is initiated by the payment gateway. The merchant / seller receives the funds and makes a scheduled delivery of the products / services paid for by the buyer.
What is a payment gateway?
A payment gateway is a software that facilitates transfer of information between a transacting website and the processing bank. When a customer orders a product from a payment gateway it performs a variety of tasks to process and enable a secure transaction of online payments between the internet customer and the seller or merchant. The payment gateway handles the verification and transfer requests and ensures that the processing of the payment is smooth for both merchant and customer.
