Choosing the Right Payment Processing System for Website
How does a payment processing system for website help a business? A secure, fast, time and cost saving, mature system can help to improve shoppers’ experience.
Do you know that more than 60% of shoppers abandon their cart if they need to wait for more than 3 seconds? However, more than 70% of the shoppers won’t even return.
Customers don’t want to wait longer to process their payments. So, if a payment system for website isn’t updated enough, chances are you will lose many of your potential customers.
A modern payment system for website offers payment links and QR codes to take payments from customers. It is helpful to offer a seamless website payment processing experience and helps to speed up the whole payment process. Thus, it is always important to choose a great payment system for website. Let’s dive deeper to know a bit more:
How Does a Payment System for Website Work?
When your customers pay for the services or products online, their money needs to go through a flow. Here’s how it works:
1. A customer goes online to buy your services or products and chooses the desired payment method.
2. A payment system for website payment processing captures the financial information and shares it with the card network.
3. Once the transaction is authorized, the details are shared with issuing bank and card network.
4. This information is shared with the payment system for website payment processing, and the issuing bank afterward sends the funds to the card network.
5. The card networks take their cut and transfer the funds to the acquiring bank, which can be deposited into the merchant account and then to the business bank account.
The whole process is automated. However, the major role of a payment system for website is to translate the encrypted financial information from one bank to another. Online credit card gateways are important in offering secure payment methods to prevent fraud, and it ensures smooth website payment processing between customers and businesses.
Why You Need to Integrate a Payment System for Website
In order to make online payments, you need to have a payment system for website. However, it is important to choose a system that offers smooth integration and website payment processing. Having a slow payment system for website means you will lose a customer over time.
1. Process Large Transaction Easily
Processing larger transactions can be tricky. If your customer is paying a lot of money, he wants to ensure that payment will reach its destination.
Integrating a licensed payment system for website payment processing means your customers have the security that their card details aren’t being compromised with any third parties.
2. Increase Website Conversions
Taking your customers to a separate page for making payment can be confusing. This is the place where you encounter errors, and thus it is important to ensure that a payment system for website offers a smooth flow for the customers. Offering a superior customer experience ensures that the entire website payment processing happens effortlessly and quickly. A smooth website payment processing ensures that customers are happy with the payment system for website.
3. Track Payment on One Dashboard
Making use of several payment providers to process different payment methods means you will have to deal with three different dashboards. It can be confusing and difficult to keep track of your cash flow in such a situation.
Having a single payment system for website payment processing that accepts all payment methods means you can easily track your cash flow.
Oceanpayment is a payment system for website that offers smooth transactions for website payment processing and a user-friendly dashboard to track all of your cash flow in one place. It is a secure, fast, cost-saving, and flexible payment system for websites. Integrate it with your website today and let your customers enjoy a better website payment processing experience.
The payment system for website has emerged with the development of e-commerce. With the development of the times, the method of recording collection and payment behavior continues to iterate. Nowadays, in the internet era, our business activities have also undergone the evolution of digitization and informatization, which is the so-called e-commerce business. Let’s find out more about what is website payment processing and how does it work.
What is website payment processing?
Website payment uses the most advanced means of communication, such as the Internet and Extranet, while traditional payment uses traditional communication media. Website online payment has high requirements for software and hardware facilities. Generally, a networked computer, related software and other supporting facilities are required, while traditional payment does not have such high requirements. Here are several steps for customer during the website payment processing:
1. Customers access the Internet (Internet), browse goods online through a browser, select goods, fill in online orders, select the applied online payment and settlement tools, and are authorized by the bank to use them, such as bank cards, e-wallets, e-cash, E-check or online bank account number, etc.
2. The client encrypts relevant order information, such as payment information, and submits the order online.
3. The merchant server checks and confirms the customer’s order information, and forwards the relevant and encrypted customer payment information to the payment gateway until it is confirmed by the bank back-end business server of the bank’s private network, in order to verify it from the bank and other electronic money issuing institutions Obtain authorization to pay funds.
4. After the bank verifies and confirms, through the established encrypted communication channel through the payment gateway, the confirmation and payment settlement information are sent back to the merchant server. For further security, the payment authorization request is sent back to the customer (or not).
5. After receiving further authorization settlement information from the customer, the bank transfers the funds from the customer account to the bank account of the merchant carrying out e-commerce, settles with the help of the financial private network, and sends the successful payment and settlement information to the merchant and the customer respectively.
6. After receiving the settlement success information from the bank, the merchant server sends the online payment success information and delivery notice to the customer. So far, a typical online payment settlement process ends. Merchants and customers can use the Internet to query their own fund balance information for further verification.
How does payment processing work?
Let’s start with the basics. Any online payment processing platform consists of three components:
Merchant account: This is a bank account that provides online payment processing for Internet business. You can receive merchant accounts through payment processing companies, independent contractors, or large banks. Without it, you will have nowhere to keep the money customers paid you.
Payment processor: Payment processing companies or financial institutions are responsible for processing transactions between the customer’s bank and the bank. They deal with issues such as credit card validity, available funds, card limits, etc. A more important function of payment processors is security. It is the responsibility of the payment processor to check that the card information is correct. They also deal with various errors, accidental transactions, and incorrect charges.
Payment gateway: This is like an online point of sale. The payment gateway is the intermediary between all transactions on your website and the payment processor. It connects your merchant account with credit and debit card issuers such as MasterCard and Visa. Therefore, payment gateways are essential for Internet payment processing systems.
The entities participating in online card processing services are customers, businesses, payment processors, payment gateways, customers’ banks, and corporate banks. Some online payment processing software providers provide all three components in one platform, namely merchant accounts, payment processors, and payment gateways. Others combine merchant accounts and payment gateways with third-party payment processors.
Website payment processing flow
The data flow of the payment system can be divided into two modes based on merchant forwarding and non-merchant forwarding. From the customer initiating a purchase request to the customer receiving the product and the merchant receiving the funds, the entire transaction process needs to go through the following payment process.
1. The user browses the e-commerce website, selects the product that he likes, and makes a purchase request to the merchant.
2. The merchant digitally signs the order verified by the user and submits it to the payment system.
3. The payment gateway calls the payment interface and asks the user to fill in the account information.
4. The user encrypts the account information with the public key of the payment gateway and transmits it to the payment system.
5. If the confirmation is successful, the returned result of the digital signature financial institution is sent to the merchant, and the merchant is notified to deliver the goods. Otherwise the merchant is notified that the transaction has failed.
6. The confirmation is successful and the financial institution is required to transfer funds.
Online payment gateway for website – Oceanpayment
In order to facilitate web application merchants to access the website payment function, Oceanpayment fully supports website payment processing. Merchants can quickly integrate access to the website payment function through an open interface. The user visits the merchant’s website on the PC for consumption, pays through the computer website, and can directly jump to the in PC to complete the payment. It provides supporting services such as refund, clearing and settlement, and reconciliation, which provide users with a safe, convenient, professional and simple payment experience.