Running a business comes with numerous challenges, especially when handling online customers. Every business needs an integrated payment processing system to cater to internet-based customers and easily track orders and deliveries.
Technology has made it possible for small and medium enterprises to explore b2b ecommerce platforms for their payment processing. Ecommerce payment processing platforms are designed to accept electronic payments and ensure all transactions are hassle-free.
How Ecommerce Payment Processing Works
Many businesses have diversified their operations in the last decade to reach online customers through various platforms. However, the main challenge is to bridge the gap between you, the customer, and the bank.
An electronic payment processing system plays a vital role in your operations as it approves transactions not only for remote customers but also for customers who use online platforms to pay for their commodities.
Without the green light from your payment system, no payment can be made. It's also worth noting that before payments reach your merchant account, it's verified through a series of steps, including:
- Verifying the customer’s bank balance
- Check for sufficient funds to complete the transaction
- Check the validity of the credit card
Features of Ecommerce Payment Processing
Payment Gateways
The most important part of an ecommerce payment process is determining the payment gateway designed for online purchases. It’s usually integrated with an online payment service such as a b2b ecommerce platform.
These gateways serve more than a bridge as they protect your business from fraudsters and hackers. Information collected from customers is sent directly to the payment processor and approved payment information without involving the store's website.
Payment Processor
A payment processor is responsible for approving payments and liaises with the customers to remit the funds into your account. They transfer data of the payment between your bank and the customer's bank to confirm payment. You also received equipment from the payment processor to accept card-based transactions and assist you in creating a merchant account.
Merchant Account
Your merchant account connects your payment gateway with the customer’s payment information allowing you to receive payment directly. Once the threshold is met, your payment processor authorizes funds into your account, allowing the customer's bank to debit your account.
A merchant account works closely with the payment processor as they act as security for your merchant account and assure the validity of the transactions. The payment processor also helps you comply with PCI standards.
Is Ecommerce Payment Processing Right for My Business?
Ecommerce payment processing is an ideal choice for any business, especially with the rise of internet-based shopping. Through an integrated payment system, you can make transactions easy and hassle-free for your customers. It also provides an opportunity for you to explore other market options and increase conversion rates for your business.
Ecommerce payment processing is an asset every business should consider for their business. However, you need to research more on the payment gateway and the payment processor to streamline your operations. Take advantage of b2b ecommerce platforms to grow and improve your business.
