Ecommerce Overview (Merchant's Perspective)
Electronic commerce, more commonly referred to as ecommerce, refers to any transaction made over the internet. In relation to StarChapter's service, ecommerce is referencing the integrated payment workflow required to make the whole payment process work, including the StarChapter software purchasing page, payment gateway, merchant account or payment service, card networks, and banks.
Payment Gateways and Payment Services
Payment gateways and payment services are tools that integrate between your StarChapter system and the rest of the payment processing workflow. Payment gateways integrate with StarChapter and result in funds being deposited directly into your bank account. Payment services also integrate with StarChapter, but funds must be transferred manually to your bank account.
A full list of compatible payment gateways and service providers are listed on StarChapter's website.
Payment Flow
There are many steps between a purchaser initiating a transaction and those funds arriving in your organization’s bank account. First, a purchaser will initiate the transaction by submitting their payment information through your StarChapter website. StarChapter then routes the transaction information through the payment processor who clears it through the card network and the bank associated with the purchaser's credit card. The approval or decline decision from that card holder’s bank is routed back through the card network, payment processor, payment gateway, and to the StarChapter website where it is reflected as a confirmation and declination to the purchaser. Typically, 2-3 banking days after the transaction has been processed, the funds, minus transaction fees, are deposited in your organization’s bank account.
Glossary of Terms
AUTHORIZATION
Authorization refers to the approval received from the purchaser's credit card issuer to complete the transaction.
BATCH
A Batch is a collection of transactions that are combined into a single funds transfer.
CHARGEBACK
A Chargeback is the reversal of a completed credit card transaction. This is most often initiated by the purchaser's dispute of a charge.
FUNDING
The term Funding references the transfer of funds from the payment process to the Merchant's bank account.
MERCHANT ACCOUNT
A Merchant Account is the bank account where the organization's funds pass through before depositing into the merchant’s checking account.
PAYMENT PROCESSOR
A Payment Processor is a financial institution that handle funds transfer between your payment gateway, the card networks, the purchaser's bank, and your merchant account.
RECONCILIATION
Reconciliation is the process of comparing financial records between accounts to ensure that all funds are accounted for.
TRANSACTION FEES
These are the fees collected by your payment processor during the process.
