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README.md

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@@ -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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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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<img width="1214" alt="buy-2" src="https://user-images.githubusercontent.com/17494745/209847802-afc048d9-9fbd-42d0-8e0f-3f117a5bdeac.png">
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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/).
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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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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**.
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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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