How to choose a payment system or payment system for a website

People prefer online shopping because of the ability to securely select and pay for goods even at 3 a.m. in a convenient way. According to Global Digital, almost all online purchases are made through payment systems. Only sellers on message boards accept direct payments to bank cards or legal entities. Moreover, platforms automatically integrate payment systems because buyers distrust manual payment instructions such as "Send XXX money to YYY card". So let's take a look at the process of connecting payment on the website, available payment types, and their functionality. And of course, we will help you choose the payment system that suits your website.

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Briefly about what a payment system or online payment system

An electronic payment system (EPS) is a mechanism that moves electronic funds from a buyer's account to a seller's account without the use of cash. For example, Visa and MasterCard are full-fledged payment systems. If you have a Visa card, you can safely transfer funds to another Visa card, regardless of the bank that issued it. The only question that arises is how much it costs to make such a transfer. With the advent of online commerce, electronic payment systems have also begun to develop. Sending goods by cash on delivery poses a risk for the seller, as there is a possibility that the buyer will not pick up the goods and the seller will have to pay for the return of the goods. Paying for the goods before they are shipped poses a risk to the buyer, especially if they encounter fraud. Electronic payment systems are designed to resolve this conflict. The buyer makes full payment for the goods, which is communicated to the seller, enabling him to safely ship the goods. A digital receipt is also generated, which records to whom, how much, and for what the buyer sent the money. The main advantage for e-commerce is the automation of the process. After connecting the system to the website and setting up the store, the seller only discusses the delivery details and sends the goods. The system automatically generates an invoice for the order, requests a secure payment, and transfers the money to the seller's bank account, which is a quick and convenient way to.

Who needs an electronic payment system or payment system

Any online store that sells both physical and digital goods and provides services needs payment systems on its website. Security secure payment methods helps to increase customer interest in purchasing, as:

  • Customers can choose a payment method that is convenient for them;
  • The customer knows that their payment information, such as card details, is protected;
  • Payment is made in just a few clicks without the need for registration and identity verification.

What is a payment gateway in the payment system and online payment systems

A payment gateway is a separate intermediary that manages transactions through one of several acquiring banks. The gateway selects the least busy acquirer to process the payment using conventional banking methods. The gateway operates exclusively with payment information, not with the money itself.

Features of payment gateways:

  • Ensure continuous operation. In case of problems with one of the acquirers, the gateway redirects transactions through another.
  • They support various payment methods, including bank cards and electronic money from different payment systems. However, separate agreements with each of them are required.
  • They provide flexible customization of interaction with acquirers, which is especially valuable when you have a large volume of payments.

What is a payment aggregator in an online payment system or payment systems

Payment aggregator is an ideal intermediary that has already entered into agreements with all popular electronic payment systems and automates the payment processing process. The payment process is as follows: the aggregator receives the customer's data, transfers it to the issuer of the customer's payment instrument for processing, after which the issuer makes the payment and transfers the funds to the aggregator, which then transfers them to the merchant. For an online store, an aggregator is the best way to quickly connect a wide range of payment methods. The aggregator's commission is fixed and does not depend on the seller's sales volume, as the aggregator pays the acquirer a commission on its turnover, which can significantly exceed the seller's turnover by thousands of times.

Features of the payment aggregator:

  • Interaction with the APIs of available electronic payment systems is carried out by the aggregator. The merchant only needs to install the aggregator module.
  • The aggregator directly manages customers' money and payment information. Initially, the payment goes to the aggregator's account, which independently determines the moment of transferring funds to the seller. In case of problems on the part of the aggregator, the seller may have to wait.
  • The aggregator allows you to connect even non-traditional payment methods, such as payment via a terminal, phone, or cryptocurrency.

How payment for services through the website works

The process of the payment system is described as follows:

  1. The customer selects products from the store's catalog and places them in a virtual shopping cart.
  2. After clicking the "Pay" button, the customer is redirected to a secure page to make a payment on the website.
  3. The buyer enters the necessary information about the payment and confirms it.
  4. The seller receives a notification about the payment of the order.
  5. Then the seller contacts the buyer to confirm the details of the order and the delivery method.
  6. Within 1-3 days (depending on the payment system service provider), the payment for the order is transferred to the seller's account.

These are only the aspects of the work that are visible to both the seller and the buyer. In fact, money goes through a more complex path that depends on the type of payment system used.


Types of payment systems, online payment systems and Internet acquiring

Acquiring is a payment process using a bank card. The term comes from the English word "acquire", which means "to receive". The bank that accepts the payment is called the acquirer or the receiving bank. The payment process looks like this: the terminal transmits payment data to the processing center, which, in turn, sends information about the card and the payment transaction to the acquiring bank. The acquirer transmits this data to the card issuing bank, which confirms the payment transaction and transfers the required amount from the buyer's bank card to the seller's current account. The issuer returns the payment confirmation to the processing center, and then the center transmits the information to the terminal, and the terminal transmits it to the cash register. The cashier issues a receipt of successful payment, and the buyer receives the goods. When using an electronic payment system on a website, the process is similar, except that instead of reading a magnetic stripe or scanning an NFC chip, you need to enter card details: card number, expiration date, and CVV code. The Internet acquiring service encodes this information and transmits it to the issuing bank via secure communication channels.

Basic requirements of payment systems to the seller's website

Payment services providers prefer to cooperate only with reliable sellers to avoid problems. In addition, for successful payment processing, it is necessary that the merchant's website interacts with the modules correctly. Each payment system has its own website requirements, but in general, they all boil down to the following:

  • Availability of content, internal links, and completed pages available to customers;
  • Using a second-level domain, paid hosting, one domain name for all pages, and a static IP;
  • You can enter your personal account via HTTPS. The checkout process should also be protected by HTTPS;
  • Card details are requested only on a secure form page;
  • The website must contain full information about the company, including its legal and actual addresses, as well as a general description of the goods and services offered;
  • The goods and services presented on the website must be in accordance with the law;

The prices for all available goods and services must be indicated; the website must present logos of payment systems through which the buyer can pay for the order.

The main criteria for choosing a payment system or online payment system

By the time you reach this point, you already know how electronic payment systems for online stores check potential customers' websites before signing a contract. Customers should also research electronic payment systems before signing a contract.

The following aspects are taken into account during the audit:

  • Geographical coverage of the payment system: not all payment methods are available in all countries from which orders may come.
  • The terms of use of the payment system in your country: for example, PayPal may have withdrawal restrictions in certain countries. It is important to study the terms of withdrawal so that your virtual account does not remain inaccessible.
  • Type of payment system: find out which intermediaries process the details and funds to estimate the timeframe for money transfers.
  • Payment system fees: it is important to carefully study all the terms and conditions related to transaction fees and compare them with competitors.
  • It is recommended to show the transaction documentation to a lawyer, as there may be unobvious dangers.
  • Technical requirements for connection: it is best to show the documentation of technical requirements to the site administrator. For example, for an online store on the WordPress platform, you can easily install an aggregator plugin, but for a site developed from scratch, you need to code the API, which can be expensive and time-consuming.
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