Ecommerce Guide

Overview Of How Ecommerce Works

Ecommerce is where consumers can purchase goods and services over the web using their credit card. The basic process of how this works is shown below:

• A consumer visits your website and uses your online store to make a purchase. The transaction is conducted over a secure connection (SSL) to your web hosting server.
• Payment Processing Gateway handles the secure, real time encrypted credit card information and co-ordinates the transaction.
• Merchant account processes the movement of funds.
• Funds are debited from the consumers credit card account.
• Funds are deposited into your designated bank account.

What You Need To Handle Ecommerce

There are different levels of ecommerce integration. You can make it very simple by letting a 3rd party such as Paypal handle all your ecommerce processing, or you can integrate everything into your own website.

If your site is going to accept credit cards then you need to have SSL (Secure Socket Layer) capability. This encrypts any information sent between the consumers PC and the webserver. When a SSL connection is in place you see the lock icon on the browser on the bottom right hand side.

You can use the hosts shared SSL area - this way you do not need your own certificate or you can buy your own SSL certificate (around $100 a year), you will need a hosting account with a Unique IP. This looks far more professional than using a system like PayPal.

If you intend to do everything from your site and not use a 3rd party like paypal, then you will also need a merchant account and an account with a processor. For tips on how to choose a merchant account read Internet Merchant Accounts article.