How does Magento’s payment processing work?

Magento allows for various payment options to be preselected. In general, there are three transaction types used to process your payment data.

In this article you will find

Magento is one of the world’s most popular eCommerce platforms. Customisable and primarily used to build sites with robust selling features, the platform features many common eCommerce tools. These include analytics tools and inventory management. In this piece, you’ll discover how to operate one of our most popular shopping cart solutions.

What are the benefits of using Magento?

Used by merchants across the globe, Magento handled more than $150 billion’s worth of gross merchandise revenue in course of 2018. In addition to its capabilities when it comes to optimising for mobile commerce, the software also enables global expansion possibilities. Moreover, its Progressive Web App (PWA) tools enable eCommerce sites to enhance customer engagement and their reliability.

Magento’s user-friendly interface also means that merchants can access everything they need to in a centralised dashboard, while also cutting out hours of manual work. Through this, merchants are then able to focus their time on other important areas of the site and business development. The platform’s business intelligence tools also mean that it’s easier to discover growth opportunities in new markets, along with being proactive when it comes to guessing upcoming shopper trends (something we emphasised the importance of in a recent blog post.

What transaction types are available?

Magento allows for various payment options to be preselected. In general, there are three transaction types used to process your payment data. These are:

  • Authorise: After requesting a certain amount from the cardholder to be put on hold, the money isn’t immediately transferred to your own account. Instead, the selected amount is held for potential future collection. Most-commonly used for merchants shipping physical goods, this method avoids dealing with refunds for scenarios that

  • could’ve been avoided – for example, the product is out-of-stock or shipping isn’t possible.

  • Capture: This transaction type normally doesn’t require customer data. Instead, it simply transfers an authorised amount to your account. Often used with physical retailers, in conjunction with a previous authorisation, the initial amount parameters can’t be changed.

The third transaction type is sale – a combination of the abovementioned duo.

Where does the payment process begin?

The Magento workflow begins when the user enters their credentials on the checkout page. Once they share their billing and shipping addresses, they have to choose their preferred payment method.

What is the payment journey?

Following the verification stage, the customer is unable to cancel. Once the order has been placed, one final verification of the billing and shipping address is performed. After everything is set up, all added objects are called to save this data and the order is then placed.

If an error is detected at some stage, an exception is communicated and the Magento software is notified that something went wrong. However, if everything has gone as expected, up to this point, a new transaction is then created, before notifications are then sent to the customer. The newly-created order will then be available in your Admin Panel, waiting either an update from you or by external notifications.

At emerchantpay, we offer a range of shopping cart solutions to streamline your business flow and enable you to be more innovative. To find out more, please contact us.

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