@@ -14,36 +14,35 @@ and how you can add it to your application!
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# Why? 🤷
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- Not all applications are free.
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- There are some that can be acquired through
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- a [ one time purchase] ( https://git-fork.com/buy ) .
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- There are others
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- that are [ subscription-based] ( https://www.crunchyroll.com/welcome ) .
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- Regardless of the type, all of these share one thing in common:
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- ** they use payment processing platforms/gateways
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- to manage transactions** .
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+ Sadly, not all applications can be "free";
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+ The software engineers that build them need to be paid
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+ and the servers that host them aren't free either.
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+
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+ Some apps are sold via ** one time purchase** .
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+ Others are subscription-based.
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+ Regardless of the type,
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+ all of these share one thing in common:
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+ ** they use payment processing gateways
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+ to collect funds** .
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In any current application,
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- knowing how processing payments * work*
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- and how they * can* be implemented
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+ knowing how processing payments work
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+ and how they can be implemented
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is important,
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as it affects the bottom-line
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of the project/application/company.
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# What 💭
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- Let's think for a minute of what happens
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+ Consider what happens
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when we purchase something online.
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- Assume we want to [ buy Postico2] ( https://eggerapps.at/postico2/ ) ,
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+ Assume we want to buy a product online
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+ e.g:
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+ [ Postico2] ( https://eggerapps.at/postico2/ ) ,
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a PostgreSQL database editor.
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<img width =" 1214 " alt =" buy-1 " src =" https://user-images.githubusercontent.com/17494745/209847803-5fae9197-afed-46c3-9746-5faaac73fe6f.png " >
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- If we click the ` Buy Postico 2 ` button,
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- we are redirected to a page where we can buy a license.
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-
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- <img width =" 1214 " alt =" buy-2 " src =" https://user-images.githubusercontent.com/17494745/209847802-afc048d9-9fbd-42d0-8e0f-3f117a5bdeac.png " >
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-
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If we proceed to payment,
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we can pay with a credit card or Paypal.
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@@ -53,7 +52,7 @@ But how was this implemented?
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Is there any service behind this?
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For those with a keen eye,
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you might have noticed
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- that in the upprt third of the screen,
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+ that in the upper third of the screen,
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it seems that this transaction
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is being handled by
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[ ` MyCommerce.com ` ] ( https://www.mycommerce.com/ ) .
@@ -69,24 +68,22 @@ to provide different ways of users to pay
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and integrate payments * seamlessly* in our applications.
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But, as you may be aware,
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- there are several other SaaS providers,
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- such as [ ` Stripe ` ] ( https://stripe.com/en-pt )
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- or [ ` Square ` ] ( https://squareup.com/us/en/ ) .
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- Each one of these may differ from each others.
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-
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- But we are getting ahead of ourselves.
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- We need to clarify some concepts before moving forward.
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+ there are several other Payment processing providers,
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+ such as
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+ [ ` PayPal ` ] ( https://developer.paypal.com/api/rest/ ) ,
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+ [ ` Stripe ` ] ( https://stripe.com )
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+ or
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+ [ ` Square ` ] ( https://squareup.com/us/en/ ) .
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- Ready to start? 🏁
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- ## How payment works
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+ ## How Payment Works
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Let's start with an analogy.
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- Imagine you want to send a parcel to your father .
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+ Imagine you want to send a parcel to someone .
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1 . You first drop it in a DHL (or UPS) drop-off point.
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- 2 . DHL collects the package and transports the parcel to your father .
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+ 2 . DHL collects the package and transports the parcel.
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3 . Once the delivery is complete,
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- a confirmation e-mail is sent to you and your father .
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+ a confirmation e-mail is sent to you and the recipient .
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Think of the DHL distribution network
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as analogous to a ** payment processor** .
@@ -103,34 +100,34 @@ into the merchant's bank account.
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So, a ** payment processor** functions as an intermediary
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between the customer's party
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- (which consists of the user and his bank)
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- and the merchant's
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- (which consists of the merchant and his bank).
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+ (which consists of the buyer and their bank)
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+ and the merchant
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+ (which consists of the merchant and their bank).
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It is the entity responsible for communicating
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between both parties in the transaction.
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Meanwhile, the ** payment gateway**
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is a * point of sale* for online payments.
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- Similarly to when a customer swipes his card
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+ Similarly to when a customer swipes their card
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on a physical credit card terminal,
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online stores need a gateway to securely collect
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the customer's payment information.
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- So * payment gateway is basically a virtual terminal,
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+ So * payment gateway is a virtual terminal,
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and functions as a point of sale* .
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This whole process of online payment
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usually assumes the merchant
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- has a [ ** merchant account** ] ( https://www.investopedia.com/terms/m/merchant-account.asp ) .
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+ has a
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+ [ ** merchant account** ] ( https://www.investopedia.com/terms/m/merchant-account.asp ) .
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A merchant account is simply
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a type of business bank account
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that * allows a business
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to receive credit card
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and electronic transactions* .
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- Do note that the terms ` "payment processor" ` and ` "payment gateway" `
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+ > ** Note ** : the terms ` "payment processor" ` and ` "payment gateway" `
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usually fall under the same term - ` payment processor ` .
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- This is because they work together in achieving
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- the payment processing.
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+ This is because they work together to handle payment processing.
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So if you see platforms like ` Stripe `
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being mentioned as a "payment processor",
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it's because it offers both ` payment gateway ` and ` payment processor `
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