E-commerce credit card processing: basics that you should know

PayRetailers - Pagos por internet

If you are thinking about getting into online commerce, one of your biggest concerns will be how to offer your customers different options to make their payments. That is why in this blog, we describe e-commerce credit card processing and show you the basics you need to know.

We show you the right way to use social media for e-commerce


Online payment gateways. What are they?

Online payment gateways are the first portal our customers find when they click “buy” the product on our website to make digital payments.

Basically, their function is to be an intermediary between your online store site and the payment processor which receives your customer’s payment. When the buyer enters their personal and bank details on the payment gateway site, the payment gateway forwards them to the payment processor.

Some of the features which should be taken into account when selecting any payment gateway for our store are:

  • Security: given the sensitive nature of the information handled, it is important that the payment gateway guarantees the security of the data which circulates.
  • Permanent operation: since one of the advantages of e-commerce is the complete availability at any time, the payment gateway must work 24/7.
  • Variety of payment options: offering a wide range of options allows you to attract many kinds of customers. In addition to credit and debit cards, some gateways such as PayRetailers offer the option to pay in cash at certain points of sale. And even the and
  • Multi-currency operation: if you plan to trade in other countries, it is important to use a payment gateway which can offer transactions in different currencies. You have to know the safest way to shop online in 2021 with and without cards.

The best social commerce platforms of 2021

Elements that you will find in any e-commerce payment process

The payment processor is the second element which comes into play in the world of online shopping and e-commerce. In this case, it’s a financial institution which provides the connection between the merchant’s account and the information provided by the online payment gateway. In this sense, we have four elements in online shopping which we can list as follows:

  1. Online Store
  2. Online payment gateway for website
  3. Online payment processor 
  4. Merchant account

How to create the best content for social media in 2022

How do e-commerce payment processors work?

The interaction of these four elements normally occurs in the following chain of events:

  • The customer clicks “buy” in our online shop and automatically opens the online payment gateway.
  • Once the payment gateway is displayed, the customer enters their personal and banking information (cards, account, etc.).
  • The payment gateway sends the information to the payment processor which validates the information. In this validation process, the processor contacts the card-issuing bank through a card network when a credit card payment system in e-commerce is available.
  • If sufficient funds are available, the purchase will be accepted by the card issuing bank. It will forward this information to the payment processor.
  • The processor sends the result of the transaction to the payment gateway to report that the purchase has been made and everything went well.
  • The customer’s card issuing bank releases the funds to the merchant’s bank or to the payment processor if the merchant has an account with the merchant. 

Internet payment methods available in 2021 for safe shopping

Although it sounds like a complex process, it really is wonderful that in most cases the whole process described above takes no more than a few seconds or minutes. 

This is due to the increased interconnection between the tools such as gateways, processors, banks and websites which make e-commerce a quick and secure process.

The best e-commerce tips for your business 

Considerations before signing on an e-commerce payment processor

So then, what is the best e-commerce payment processor?

Well, this is one of those questions that can hardly be answered definitively. Faced with the diverse needs of online businesses and ventures, there are a variety of payment processing services which cater to one or more specific requirements. 

However, here are some things you should consider when selecting a processor for your for the purpose of accepting credit card payments

  • Prices: Please note that the cost for the use of a processor can be fixed on a monthly or per transaction basis. You should evaluate this very carefully before selecting one of them.
  • Customer service: In case something goes wrong, a good payment processor is one which guarantees availability to resolve your problems and concerns.
  • Fraud protection and security: The level of sensitivity of the information that payment processors handle, both customer and merchant, means that it is not a good idea to skimp on the security tools offered by the payment processor. In addition, compliance with the security standards of the country where the trade takes place helps give you more confidence to delegate your transactions to a processor.
  • Versatility: As explained with gateways, a good payment processor is one which ensures that different are the order of the day. 

As you can see, online payment processing is a world of possibilities which is worth understanding in order to make the best and most informed decision for our online stores and ventures. 

So, if you’re thinking about how you can implement e-commerce credit card processing in your business, PayRetailers can help you, with an easy to use platform which manages your customers’ credit card payments. 

In addition, the integration of various solutions and multiple presence in Latin American countries will undoubtedly offer you a satisfactory experience in your quest to increase your sales.

Optimizing a successful micro-business easily 


PayRetailers, we are your payment
processor in Latin America