Wednesday, 29 December 2010

E-commerce Billing – The Integration of Third Party Payment Gateways

Billing system is critical in setting up an ecommerce site. On the business aspect its better to have your own payment gateway linked direct to your bank account, compared to other payment solutions. Now choosing this option over the integration of third party payment gateways will save them money from free additional transaction fees.


The third party payment gateways offer a connection from your ecommerce site to the Credit Card Merchants processors. There will be no fees for buying, yet customers charges will be done to the accounts of ecommerce owners. However despite the transaction fees, there are many and still increasing numbers of businesses which are now choosing to integrate third party payment gateways as part of their billing systems. This is because online users are getting more used with the third party payment gateways. The customer can sign up to the third party payment site once and he can use the account buying everywhere without providing his billing details again and again on numerous websites. Many people have paypal or Google accounts already and their trusts have been established on these systems, compared to seeing a new payment solution when viewing new websites to purchase items. Besides the fees, businesses can increase the price a little that customer’s will not mind at all.


On the other hand, some small or mediums businesses especially start up companies are also choosing third party payment gateways to save license fees and to consume time in the integration for the billing system software. There will be no high skills required to maintain them, send invoices or check billing histories. Third party payment gateways are now getting more users friendly, even with the integration process, hence the integration cost is also low, compared to a custom payment gateway.


Every ecommerce sites has different payment integration requirements. Some are as follows:


Express CheckOut


This is upon clicking the checkout button; the customer will be directed to the third party payment gateway and pay there. Upon successful payment, no back links to the ecommerce site.


Express CheckOut Pay Flow


This is upon clicking the checkout button; the customer will be directed to the third party payment gateway and pay there. Upon successful payment, the customer will be directed to confirmation page of the ecommerce site.

Credit Card CheckOut


This is upon clicking the checkout button, the customer will be directed to the third party payment gateway with credit card details fields. Upon successful payment, the customer will be directed to confirmation page of the ecommerce site.

The third party payment gateway providers already provide merchant scripts for these integrations; this is an advantage again for ecommerce business looking to offer quick and easy check out process for their visitors.


When designing and developing an e-commence site, besides considering which payment gateway you prefer to you, you will also need to look into the user side of these payment gateways, are they user friendly, do most of your customer use these payment solutions, or do they prefer to use something else.

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