How Does Payment Gateway Work for Ecommerce Websites

If you are running an Ecommerce Website, you must include Payment Gateway in order to make online transactions more secure. LetsPe is the leading payment gateway that is highly suggested by most of the Top Ecommerce platforms in 2023. In this article we have covered how Payment Gateway on Ecommerce Website Works.

Ecommerce Payment Gateway

A payment gateway allows funds to be transferred between buyers and sellers. It enables your e-commerce site to request funds from a customer's bank in exchange for the products or services they bought. If the payment is approved, it is safely transmitted to your bank.

Why do E Commerce Websites need Payment Gateway?

Ecom websites need Payment Gateway in order to get all the online transactions securely in their own account. It is essential for the online transaction process since it authorizes transactions between merchants and customers.

Payment Gateway Process for Ecommerce Website

Now, you must first understand how a payment gateway processes for an Ecommerce Website. The entire process is divided into three major portions which are given below here:

• Ecommerce Website Transmits Payment Information to the Payment Gateway
• The consumer explores an Ecommerce website, adds items to their shopping basket, and then checks out.
• To confirm their order they will provide payment and shipping details as part of the checkout process.
• They place the order by pressing the 'Pay Now' button.
• The payment data is encrypted in the consumer's web browser before being delivered to the Ecommerce web server. 
• The transaction is encrypted using Secure Socket Layer (SSL), requiring the Ecommerce Site to have a complete SSL certificate.
• The gateway software on the Ecommerce website then sends the financial transaction details to the payment gateway, again utilizing SSL encryption.
• At this point, the payment gateway process takes control.

Payment Gateway Sends a Request for Authorization to the Consumer's Bank

The payment gateway transfers the encrypted transaction data to Ecommerce businesses' bank's payment processor.

The payment processor then passes this information to the consumer's card association, such as MasterCard or Visa.

The card association forwards the payment information to the bank that issued the consumer's card.

The consumer's bank gets the request and verifies that the funds available to the consumer are sufficient to cover the requested amount.

The consumer's bank replies to the payment processor with a code indicating whether the request was granted or denied (and, if denied, why).

This response is then sent back to the payment gateway by the payment processor.

The payment gateway sends this response to Ecommerce website, which interprets it.

This response is forwarded by the payment gateway to Ecommerce website, which interprets it and passes it on to both you as the merchant and the client who is checking out.

Payment Authorized - The Merchant gets paid by the Consumer's Bank

If the consumer's payment gets cleared, Business sends the authorization back to Ecommerce ("the acquiring") bank as part of a batch that is processed.

All approved money is deposited by your bank into either your merchant account or the aggregate merchant account of your payment gateway.

The payment is then deposited into Ecommerce business bank account from that merchant account.

Best Payment Gateway for Ecommerce Sites

Letspe is the leading payment gateway in India and they are currently operating from Gurugram. 

Can Letspe integrate with other Ecommerce platforms?

Yes, after you join LetsPe, you will have the option of Payment Gateway integration with the ECommerce platform. They have this alternative to connect easily with all Ecommerce websites, without much trouble, that are present in the market. 

LetsPe's transaction fees are significantly lower than those of other payment gateway operators in India. There are other benefits of connecting with LetsPe Payment Gateway, like:

• The transaction fees starting at 2% + GST minimum.
• Both the setup and annual fee are free of charge.
• Debit card, credit card, phone payment, google payment, net banking, amazon pay, paytm, and nearly all other methods accepted. 
• It solely supports the INR currency at the moment.
• It only requires 24 hours for onboarding.
• LetsPe, as they offer fund settlement even on Saturday’s and Sunday’s.
• It clears the settlement in T+1 day, which means once the transaction is completed, this firm takes one day as a keeping time. 

Conclusion

In this article, we have mentioned about the process of payment gateway for Ecommerce websites. You can connect with LetsPe, which uses the latest technologies for the security of the merchant. Also, they can connect with any Ecommerce platform available in the market today.