In our review, we will tell you how the payment orchestration platform works and why almost every business owner needs it. Want to know more? Please visit Corefy`s site!
What is a payment orchestration platform?
Electronic payments are the most complex part of e-commerce. The entire transfer processing chain consists of several stages. The main topic here is payment gateways and processors. These words are similar, but only because they are closely related to remittance processing. Their roles are completely different. So what’s the chasm between a payment orchestration platform and a money gateway? We’ll break down both concepts and compare their roles in the transaction processing chain:
1. The buyer chooses the necessary product or service in the online store.
2. When it comes time to fill out a separate form, he chooses the method of payment by card. In the case of CloudPayments, the customer does not go to a third-party site to confirm the operation – this increases customer trust and loyalty.
3. Then enter the details of the bank card and confirms the operation.
4. The seller receives money in his bank account, and the intermediary gets the commission subtracted.
The electronic payment orchestration platform is a subset of the main payment system. It is through it that a user can quickly and securely make a network transaction. There are many payment acceptance systems. It is the payment orchestration platform that provides the benefit, as it has an anti-cheat scanner and a high commission acceptance rate.
This is ensured by a smart programmable payment orchestration platform with an anti-cheat scanner, a high commission acceptance rate, and marketing tricks to complement financial solutions. The payment orchestration platform acts as an intermediary between buyer and seller. Upon receiving a command from the buyer, the SP communicates with the trading system and transmits data about the payment amount. At this time, payment orchestration platforms are sure to be stable and save the operation of all links of the money turnover chain — no transaction can be performed fraudulently, as users are protected at the level of state legislation.
How does the payment orchestration platform help businesses expand globally and locally?
Let’s look at this situation with a simplified example. Suppose you are building an application to fulfill orders. You decide to use an event-driven architecture and choose, say, Apache Kafka as your event bus. When someone places an order, the checkout service generates an event that is picked up by the financial service. That payment service receives the money and generates an event that is picked up by the inventory service.
The advantage of this approach is that you can easily add new components to the system. Let’s say you want to create a notification service that sends emails to your customers. You can simply add a new app and subscribe to the appropriate events, without touching the rest of the system. And now you can centrally manage the interaction settings and complexity of notifications that meet GDPR (European Union Data Protection Regulation) requirements.
This style of architecture is called choreography because it does not need an orchestrator telling the other components what to do. Here, each component generates events to which other components can react. It is wrongly believed that it is detrimental to accessibility between elements and facilitates payment orchestration platform development and modification, which is true for our notification service outline.
In any case, process research and data analysis bring interesting opportunities for transparency of event flows and business processes. Hopefully that technology with similar functionality, but more lightweight, developer-friendly, and easy to implement, will appear soon.
Why choose a payment orchestration platform?
The availability of business processes for monitoring allows you to understand the context. You can see for a particular instance how, when, and in what state it ended. And that means you can understand what path that process didn’t take (and others often do), and what events or data led to certain decisions. This is where the payment orchestration platform will help you. You can also understand what is likely to happen in the near future. Other types of monitoring don’t allow this. And while it is often not common today to discuss the issue of consistency between business and IT, it is absolutely essential that laypeople also be able to understand business processes and how events flow through different microservices.
Process tracking is a great tool for operational monitoring, reporting, KPIs, and transparency, all of which are important factors in keeping a company agile. But in current projects, tracking becomes only the first step toward deeper management and orchestration in your microservices system.
For example, you can start by monitoring timeouts in end-to-end processes. When a timeout occurs, some kind of action is automatically performed
What’s the difference between payment orchestration and a payment gateway?
What is a payment orchestration platform?
Digital payments are the most complex part of e-commerce. The entire transfer processor chain consists of multiple stages. The main “heroes” here are payment gateways and processors. These words are similar, but only because they are closely related to money transfer processing. Their roles are completely different. So what’s the difference between a payment orchestration platform and a money stream? We’ll break down both concepts and compare their roles in the transaction processing chain:
- A payment gateway is the virtual “gateway” through which a transaction must pass during the process.
- This transfer service allows you to make via credit and debit cards, as well as numerous alternative methods. It is essential for any online store or company that sells its goods and services online through a website or app.
There are different types of payment gateways on the market from different companies with different configurations and capabilities. It is not easy to choose the best one. Here are some characteristics a financial gateway for different types of e-business should have. Remember that brand recognition is not everything when choosing a purchase service provider. A reliable financial gateway guarantees PCI DSS compliance.
From the customer’s point of view, a payment gateway looks like the last page of checkout on your website. There, you enter the necessary details of the payer (such as card number). After this procedure, you can click on the “Buy now” button. Therefore, for the customer the page should look reliable and respectable — after all, it is the page with which he communicates when he pays you money.
Payment gateway software transmits transaction data between your website and the merchant account, bank, or another acquirer in the background. At the same time, the payment gateway encrypts all transaction data so that all sensitive information is transmitted through a safe and secure channel. The gateway is also a reliable barrier against fraudsters. Sophisticated security systems, antifraud filters, and automatic rules based on artificial intelligence provide the highest level of protection against data theft.
The payment gateway sends transaction data up the chain and receives the necessary information to confirm: e.g., the correctness of personal data, availability of funds on the card, etc.
The gateway also decides in the background whether to approve or reject the transaction and sends its verdict to your site. There is no universal decision about choosing a particular payment solution provider and payment gateway — each business chooses the one that best suits its target audience, goods, and services, as well as the region of presence and other factors.
During the online purchase process, the payment gateway evaluates and transmits the transaction data. But the processing of the payment itself does not happen here. There are special processors, or processors, for this purpose. They are intermediaries between the bank cardholder, the online merchant, the financial gateway, the acquirer, and the issuing bank (the card issuer).
A processor is a company or financial institution chosen by the merchant to process their online transactions, such as credit and debit card payments (Visa, Mastercard, American Express, Mir) or alternative methods (Alipay, WeChat, etc.). In addition to connecting these systems to the payment gateway and having the appropriate license, processors, or solution providers, provide their own software products to merchants. This software is integrated into the merchant’s website to process, archive, and analyze transactions in progress.
The processor performs the full range of payment transfers and processing services for its customers (online businesses). Some companies, such as ECOMMPAY, are also direct acquirers and have Visa/Mastercard principal membership status. This allows them to process credit and debit card transactions on behalf of the issuing bank. Direct acquiring makes online transfer services safer and more convenient for companies accepting different cards from different banks around the world.
Almost every company faces some difficulties in accepting payments online at first. Therefore, partnering with the right processor or payment orchestration platform is critical to business success. Choosing the right one among different payment processing companies is not only about improving your client experience, but also about significantly enlarging your sales conversion through a handy and easy payment method.
So, the main difference between a payment gateway and a payment processor is that a payment gateway is a tool/service that rejects or applies every transaction between your client and your website. And the payment processor performs the entire transaction. If you’re wondering where to start and how to choose the best payment solution for your company, you’ve come to the right place.
For example, ECOMMPAY makes e-commerce easy, so you can focus on the real issues of your business by letting us take care of the payments. ECOMMPAY takes on the functions of a direct bank card acquirer, payment processor, and payment service provider. This payment gateway facilitates:
- multichannel transactions with access to 100+ payment orchestration platforms;
- enhanced security measures;
- comprehensive risk management;
- single unified integration.
How to get started with a payment orchestration platform?
Connecting to a payment orchestration platform is quite a lengthy process, especially if it is a reliable electronic payment orchestration platform. Connecting to, which involves signing a bilateral agreement and providing the security service with a list of necessary documents confirming the legitimacy of the online merchant’s business. From a technical point of view, however, this usually takes a few days and is not some complicated complexity of installation.
The reliability of online payments is given a great deal of attention. The security of information in an electronic payment orchestration platform is ensured by a PCI DSS data protection certificate. The security of online transactions exists thanks to 3D-Protection technology. That is why when choosing an e-payment orchestration platform for accepting bank card transactions on your website, pay attention to the security technologies it uses.
Conclusion
It is very important to ensure transparency of your business processes, regardless of their implementation. Having considered different approaches, and in real-world projects, it typically comes down to some kind of event monitoring with tools like Elastic, or tracking processes with management modules. Part of the choice may depend on the specific case and the roles of the people involved. For example, a business analyst needs to understand the data collected from all instances of the processes at the right level of detail, while an operations person needs to analyze a specific process at a different level of detail and probably have tools to quickly resolve incidents at the system level.
If your project is predominantly choreographed, tracking processes can lead you to add orchestration. This will be a very important step in maintaining long-term control over your business processes. Otherwise, you can make a carefully decoupled event-driven system without realizing that you will lose transparency as you increase the number of events and processes, and thereby ensure yourself problems in the years to come. If you are working on a completely new system, find a balance between universal payment orchestrator and choreography from the start. Look at Corefy`s site, there are a lot of useful information there!
Nevertheless, regardless of the specifics of system implementation, make sure that you provide the business with an understandable mapping of business processes implemented with the help of interacting services.
