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Payment Processing System: The Backbone of E-CommerceNovember 24th, 2016 by conepay conepay
Imagine selling products and services online without payment processing system? It is just like trying to fly a kite without thread. It is next to impossible. In online environment customers buys the product with just a click and they make payment with a click as well. You may not aware of the background activities that are going on when you buy a product but actually there are a lot of activities going on before the payment is transferred to the vendors account. The core behind this action is a payment solution. All e-commerce businesses hire the services of payment gateway providers to enable the online buying and selling.
The payment processing solution integrated on the e-commerce website is connected to the association of debit and credit cards. This network connects with the issuer’s bank. One may not believe but the payment you mad online goes through 4-6 parties. This network is also known as payment value chain. The click you made to transfer the payment does not directly go in to the sellers account. It changes 4-6 hands before it reaches its final destination.
Payment gateway plays an essential role to enable the e-commerce business. It looks easy to transfer money online but when we look at the different currencies and sheer number of banks and credit companies issuing various kinds of cards it looks a daunting task. In fact, there are hundreds of methods of payment electronically that can only be handled by someone doing business when he gives the contract to a third party. This third party or the vendor has the ware withal and the technology to process payments electronically safely without any fraud.
You have to pay a small amount to the provider of processing solution for every transaction that is done on your site. This fee is nominal and you are free form the worries payment.Share it