Payment system for the website: how to accept payments for your business

Payment system for the website: how to accept payments for your business

What is a payment system?

A payments system is basically a financial structure that facilitates the purchase between a customer and a merchant. In the world of eCommerce payments, they represent financial institutions that are authorized to offer merchants accounts and special sets of web tools to get website payments. 

The most reliable way to establish a payment system on a business website starts with opening a merchant account. It is used to collect e-payments made with cards, digital wallets, eWallets, mobile payments, etc. To open such an account, a company refers to a suitable provider and submits an application.

How do payments on the website work?

It’s time we elaborate on the stages of payment processing. Remember, even if the transaction might take just seconds from the client’s perspective, the stages of its performance are still quite complex.

  1. The payment processing activates after the input of shipping and billing data when the order is submitted.
  2. At this moment, the cardholder’s data is getting encrypted and transferred to the payment processor.
  3. Then the payment processor passes the encrypted data to an acquiring bank of a business owner.
  4. The acquiring bank sends it to a specific card association such as Mastercard, American Express, Visa, etc.
  5. The card association contacts the issuing bank of the cardholder requesting the response on the matter of identification, fund availability, transaction limit, anti-fraud checks, and security.
  6. The issuing bank verifies the requested information and passes the data back.
  7. The payment processor, if allowed by the issuing bank, transfers the money to the merchant account.
  8. Then the status of the given transaction is sent to the payment gateway. It also informs businesses and customers of the result. 
  9. In a case of approval, the money is transmitted to a merchant account. In a case of denial, both parties are notified of a reason for it.

How can I accept payments on my website?

In simple words there are three types of institutions that can install the payment acceptance for a business website in Europe, the USA, and other countries:

  • Acquiring banks;
  • Payment service providers;
  • Payments gateways service providers.

Acquiring banks offer all possible merchant services, including dealing with payments both online accounts and in retail. But in return, they require massive documentation and high fees. What is interesting, it is just an acquiring bank that is permitted to issue a merchant account, all the other fin institutions can launch accounts only on behalf of it. 

A payment service provider partners only with eCommerce businesses. Providing various merchant solutions, this option remains the best alternative to an acquiring bank. The fees are way lower, the documentation is simple, and the onboarding process is fast and smooth. And besides, that PSPs are as legal as traditional banking, complying with global laws and standards. 

A payment gateway service provider normally offers gateway solutions, which are the web tools that connect an eCommerce platform and a payment processor. Similar to PSPs, a payment gateway provider is easier to start working with. If you are interested in a reliable PGSP, we recommend checking Maxpay. Our team helps with merchant account opening, provides chargeback prevention and anti-fraud services, offers incorporation of legal entities in the EU. 

And so, to turn a website into a selling eCommerce platform, a business owner must contract with one of the three organizations or service providers to obtain a merchant account and all the tools required for your company’s growth. A service provider then facilitates transactions, creating a money flow between a customer’s wallet and a merchant account.


How can I add an online payment to my website?

By getting partnered with one of the service providers and obtaining a merchant account.

Can I take payments on my website?

Absolutely. But first, you need a merchant account. using it, you can collect electronic payments online.

What is the best payment method for a website?

Any e-payment method is good. To choose the best option, you must analyze your target audience and their preferences.