If transactions are the lifeblood of a business for online merchants, the ecommerce platform is the heart. But the ins and out of ecommerce, the specifics of what to invest in and how to implement it, are mysterious to most people – even if they’re successful ecommerce professionals.
And I can prove this to you. Find your nearest colleague and either try to explain to them the details of an ecommerce transaction or have them try to explain it to you. I am sure that most people will say something like, you go on the website, you fill out your personal information, including payment details, and click Buy Now. Voila: you’ve got yourself an ecommerce transaction.
But as an ecommerce manager you need to have a better understanding of the back-end processes of an ecommerce system if you want to ensure that you’re maximizing revenue and minimizing costs. This knowledge is especially important when you’re considering a switch to a new ecommerce platform. It means having a more nuanced understanding of the technology, tools and processes involved in transferring payment information from buyer to seller.
Merchant Account Vs. Payment Gateway
Two of the basic components that allows different parties to exchange payment information online are merchant accounts and payment gateways. To the uninitiated, these terms are mysterious, but a proper understanding of what they do and why you need them can help you lower costs as you expand into global markets.
For further information on this topic check out the infographic below or read our cobweb clearing white paper: Managing the Complexities of Online Payment Processing.
