Credit Card Processing for Your eCommerce Website
A purchase on your eCommerce website should be a simple one-button click for your customer. But behind that layer of apparent simplicity lies a sophisticated process that ultimately connects your bank to theirs, processing more than $870B in online sales in 2021. As an online store operator, it is useful to understand how credit card processing works.
Credit Card Processing Definitions
In some ways, online credit card processing is similar to brick-and-mortar credit card processing. But to understand online credit card processing, it’s helpful to define a few key concepts:
- Merchant account — a type of bank account you need to handle credit card transactions
- Issuing bank — your customer’s bank that issued their credit card
- Acquiring bank — your bank
- Card network — an organization like Visa or Mastercard
- Payment gateway — software that collects the necessary payment information
- Payment processor — the entity that takes the information from the payment gateway and routes it to the banks and card network
If you have a brick-and-mortar presence that accepts credit cards, you might already have a merchant account. But you need to check to make sure it’s Internet-compliant and compatible with your eCommerce website.
Sometimes a payment processor includes a payment gateway. Some systems incorporate the merchant account with their services. A good eCommerce developer can help you find the right process for your business.
Online Credit Card Processing 101
Even though it takes just a few seconds, online credit card processing consists of several carefully secured steps. Each step must occur in a specific order:
- The payment gateway collects the payment information from your website.
- The payment gateway relays the information to the payment processor.
- The payment processor transfers the information to the card network.
- The card network forwards the information to the issuing bank.
- The issuing bank checks to see if funds are available and ensures the transaction isn’t fraudulent.
- The issuing bank replies to the card network and confirms approval of the transaction.
- The card network relays the confirmation to the payment processor.
- The payment processor transmits the details to the payment gateway.
- The payment gateway informs your customer and you that the purchase has been completed.
Credit Card Processing Security
There are security measures enacted along each step of the process to protect against hacking and cyberattacks. In particular, you’ll want to ensure that all of the entities involved abide by the Payment Card Industry Data Security Standard, which lists requirements for companies that process credit cards.
At OuterBox, we take the security of your eCommerce website seriously. We set up your online store so processing credit cards is 100% secure. We use industry-standard, 128-bit encryption. This means the information being processed comes through in code. If anyone were to intercept the code, it would not be readable. You need, and your customers expect, security when processing credit cards online. That’s why we have built special security features right into all of our eCommerce websites.
Credit Card Processing Considerations
Security is just one of the considerations when you’re looking for a partner to help realize your eCommerce dreams. You’ll also want to look for a company that’s not just an eCommerce expert. You need a partner that takes the time to understand your operation and how an online store can help you meet your business objectives.
Online Credit Card Processing That Meets Your Requirements
OuterBox will develop your eCommerce website in a way that makes sense for your business. If you choose Shopify or another major eCommerce provider for your online store, we’re adept at leveraging those platforms’ advantages to your benefit. Do you want to offer PayPal as one of the payment options for your customers? We can easily accommodate that request and incorporate PayPal into your eCommerce system.
Credit card processing is an essential piece of any eCommerce enterprise. You need to find a partner that understands the nuances of online credit card processing and how that intersects with your business.
We build our eCommerce applications to integrate seamlessly with the process of accepting and authorizing credit card payments. Effective, seamless payment options mean your customers will feel at ease shopping on your online store and will be more likely to become repeat customers.
Get the Help You Need with your eCommerce Credit Card Processing
At OuterBox, we take a holistic approach to developing your eCommerce website. From the design of the look and feel of your online store to your credit card processing system, we address your end-to-end eCommerce needs. Contact us today to learn how OuterBox can help you get the most out of your eCommerce website.