What Is e-Payment System For eCommerce?

Opening an eCommerce store for your company can be exciting with all the products sourced on an awesome website. The real challenge is getting paid or receiving money once the sale is completed. For any eCommerce business, understanding the payment system is crucial while opening an online business. If you are not familiar with payment apps or credit card payments, then the whole concept of a credit card payment system can become very complex for you, and also difficult to navigate the payments made. If you are one of the business owners confused about the whole payment system, read the article to learn what is e-payment system for an eCommerce business.

What is e-Payment For eCommerce?

E-payment system for an eCommerce store is a way of making transactions or paying for goods and services through an electronic medium without using checks or cash. Normally the payment is made through debit cards, Credit cards, and direct bank deposits. Other than these, a few more methods can be used for payments. Here are some of the common methods of payments

• Credit or Debit card payments
• Internet banking
• Direct Debit into the account
• E-Wallet
• The credit card given by stores
• Use of Digital Currency like Bitcoin etc
• Alternative methods like Amazon Pay, Google pay, Paypal, and others.

Elements of eCommerce e-Payment System

As there are several payment options available for eCommerce, here are the three major elements of eCommerce payment processing

1. Payment Gateways

The payment gateway acts as a courier between your website and the payment processor. The customer has to add the payment information on the payment gateway.

2. Payment Processors

Payment processors take the information from gateways, verify the money available in the customer account and deposit the money in the merchant account.

3. Merchant Accounts

Merchant accounts receive the payments after the whole process is completed.

Additionally, there are Payment Service Providers (PSP) or Merchant Service Providers(MSP), which can complete everything from technical to depositing money into the merchant account.

How Does Electronic Payment System Work?

The transactions of e-payments are classified into two types.

1. One-Time Vendor Payments

One-time vendor payments are common in most eCommerce sites such as Amazon, Flipkart, Shopify, etc. In this, the cardholder will type the required bank information at the checkout point. The concerned bank will approve the information if funds are sufficient for the transaction to be completed.

2. Recurring Customer Vendor Payments

These payment options are available when the customer regularly pays for the goods. Instead of entering the details every time, you enter the details once and select the option of recurring payments. This payment is mostly used for subscriptions, bills, and other monthly charges.

Important Considerations For eCommerce Websites

While the payment is processed, the payment processor completes the whole process. At the payment processor, all the activities related to checking the card and authorizing the bank to make payments are completed. Here are some of the important considerations related to the payment processor for eCommerce websites

1. Payment Processor Should Be PCI Compliant

Any company that accepts payment information collects credit or debit card information, and transmits the information should be compliant with Payment Card Industry Data Security Standard (PCI DSS). Customers should also verify that all the payments are PCI compliant.

2. Create Tokens For Sensitive Information

Some customers might continue to shop on your website and make payments through a debit or credit card. At this point, there is an option to save the card information on the site. When the customer chooses to save his card, the processor converts the numbers into tokens that can be identified when the customer visits again. By tokenizing the information, the sensitive data is protected from hackers who might try to steal the information.

3. Payment Methods Accepted

The most important feature of a payment processor is to identify if the particular payment option is available or not the customer prefers that. There might be cards that are accepted worldwide, but some cards are not. If your site sells more expensive items, then the customer might be interested in breaking the payments, so you must be able to provide customers with many payment options.

Here are some of the most used payment gateways by eCommerce sites

• Paypal
• Stripe
• Square
• BlueSnap
• Amazon Pay
• Klarna
• Sezzle

Benefits Of Using Epayments

Epayments make it easier for eCommerce websites to handle the payments made and convenient for customers to make payments. Here are some of the benefits of using e-payments

• Most efficient and effective transactions
• Lowers the cost of transactions
• Easy to add payment options to any eCommerce site without technical support
• High security is provided to the customers.
• Anti-fraud tools are available to make transactions more reliable.

Conclusion

As the eCommerce market is growing, it is a must for every online store to include e-payments for better, reliable, and secured transactions. Still, today, debit card or credit card payments are preferred by customers, but some people are also choosing alternative payment options. If you are running an online store, it is important to know about the target audience and provide them with the most reliable payment options. If you are a business owner looking to convert your business into an online store, you need to talk to eCommerce website design professionals to have a reliable online store. At Ayatas Technologies, we have over 15 years of experience designing eCommerce websites for our customers. Contact us for more information.