Understanding E-commerce

[Visibleman]

Howdies all,

I need some help understanding e-commerce and online shops. Now i understand that you need a front end, ie: database driven store, like osCommerce (and you need a server etc), however, what about the backend stuff, like Credit Card checking, Banking and SSL?

 

Now the Gateway(?) is the credit card checking, yea? And someone like SkipJack (?) can do this for a monthly/yearly fee? And percentage of the transaction is taken isn?t it? And it?s a simple case of when osCommerce is installed on the server, to install the SkipJack module and set it up? And when someone does an order it checks the card used and if its ok goes on to taking the money, yea?

 

Now for banking, how does this work? Is it similar to the gateway, signup to a banking company, like PaynetSystems, and they will take the money from the verified credit-card/debit card etc and pop it into your bank account? Obviously according to their website its a transaction fee, no monthly charges apart from a statement fee? And when setting up osCommerce its another "install a module", set it up and you off?

 

And finally the SSL, its just the encryption for the whole shopping cart site? And does anyone know of any websites that offer this? Ive looked at verisign, but it isn?t that cheap :( especially for 128bit encryption.

 

Thanks for all of your help in advance :D much appreciated.

Dom

[Guest]

I just googled for "SSL certificate" and found two results under $50 on the first page. I won't break forum rules by posting them here, but feel free to do your own search.

 

In general, gateways charge three fees: monthly, per transaction, and percentage of transaction. At some point after they process a transaction, they will deposit the remainder after the second two fees in your account are deducted. The delay depends on the gateway and your credit. Note: some "gateways", like PayPal, actually just deposit the money into their own system and you must ask them to put the money in your account. Note: if *any* gateway thinks that fraud occurred (not necessarily on your part), they will refund the transaction to the customer and take the money out of your account. I.e. it is not enough just to get an approval; you are still resposible for verifying that the person using the card is authorized to do so.

 

osCommerce includes payment modules for many gateways. However, some are easier to install than others. Also, some require the web server to be set up in certain ways.

 

Hth,

Matt