E-Commerce and Merchant Services & the Important Part of Both – Payment Gateway 

One of the things that many people must have noticed or have a little bit of know-how of is that whenever you swipe or insert a credit/debit card for making payments, then there is a certain fee that is charged. You must have noticed it when you get the slip back from the merchants. So, that fee that is charged is charged from the account of the merchant by the banks. And, that fee is charged for using the bank authorized digital device for taking the payments from the consumer. This is one of the reasons- why there are some small organizations of business like shops that take cash payments.

Fee Charged for Using E-mode of Payment – 

The major reason behind the banks taking the payments fee is because the banks that issue the digital device and the banks that receive the amount (i.e. the profit of the merchant –bank) takes the fiscal responsibility for the entire transaction process, which is done electronically. Plus, some other add-on reason is that if the buyer defaults then the liability again falls on the bankers but again this is not that possible because of the use of cards of late that has chips. Now, let us look at some of the most important types of E-commerce models. One of the latest types of models apart from other types of models like B2B, B2C, etc. is the DTC. It is also known as D2C, i.e. direct to consumer. 

Popular E-commerce Model These Days – 

DTC is a new type of e-commerce model which is very popular or becoming popular these days. But the category of this type of business keeps changing frequently. So, the various good brands that have come up in the market decide not to sell their branded product through any retailer, or distributor, or wholesaler. These brands have taken out new ways of selling their products and that is through various platforms like Instagram, Facebook, Whatsapp, Pinterest, and many more. One of the important parts of merchant services or e-commerce is also a payment gateway. Without the help of a payment gateway, it is not possible to process any credit card payment. 

Importance of Payment Gateway – 

payment gateway is a process that tracks out the set up of payments which are done by issuing banks (i.e. the banks that issue the digital device for taking payments) and the receiving banks ( i.e. the merchant’s banks that receive the payment) every time. This is only possible if a consumer goes to the shop and makes a payment with a merchant who especially has a digital device that is gateway enabled. Gateway-enabled method of making the payment is very pivotal for every merchant to have.

One of the major steps, whenever any consumer gives a payment to the merchant, is authorization by the banks. So, two things work simultaneously – one is the authorization by the banks and the other is the payment gateway method (which is a method that approves the transaction in between the merchant and the banks and the buyer. ) So, this approval is done by the payment gateway method, and without which there will always be problems in transactions. If a payment gateway does not approve the transaction, you will always find errors or some problems.