Understand how payment plugins work
In the world of e-commerce, the payment process is a critical element that directly impacts customer satisfaction and overall business success. Payment plugins, especially the Prestashop and WooCommerce payment plugins play a crucial role in facilitating secure and efficient transactions on e-commerce platforms.
In the previous article, we introduced payment plugins with its benefits, and the types of companies that need payment plugins for online transactions.
In this article, we will explore how payment plugins work, how to choose the right one for your online store, and how to install the Prestashop and WooCommerce payment plugins.
How do payment plugins work?
1.Initiating the payment process
When a customer proceeds to the checkout stage on an e-commerce website, they are presented with various payment options. Once the customer selects their preferred payment method (credit/debit card, digital wallet, bank transfer, etc.), the payment plugin comes into action.
Silkpay, as a payment solution provider, understands the importance of offering various payment options to customers.
When a customer reaches the checkout stage on an e-commerce website integrated with Silkpay's payment plugins, they are presented with a wide array of payment options. Whether they prefer to pay with Alipay, WeChat Pay, UnionPay, Visa or Mastercard, Silkpay's payment plugins come into action, seamlessly facilitating the chosen payment method.
2.Data encryption and security
Before processing the payment, the plugin encrypts the customer's payment information to safeguard it from unauthorized access. This encryption ensures that sensitive data remains secure throughout the entire payment journey.
3.Interaction with payment processors
Once the data is encrypted, the payment plugin forwards it to the payment processor or acquiring bank. The payment processor verifies the transaction details, checks for sufficient funds, and validates the authenticity of the payment.
4.Transaction authorization
After the payment processor approves the transaction, it sends an authorization message back to the payment plugin. The plugin then relays this information to the e-commerce platform, confirming the successful completion of the payment.
How do payment plugins work in Prestashop and WooCommerce?
Payment plugins in Prestashop:
Installation and configuration
To start using a payment plugin in Prestashop, the merchant needs to install the chosen plugin from the Prestashop Addons marketplace or other trusted sources. Once installed, the plugin can be configured with the required settings, such as API credentials provided by the payment gateway or processor.
Customer checkout
When a customer proceeds to checkout on the Prestashop website, they are presented with various payment options made available by the installed payment plugins. These options could include credit/debit cards, PayPal, bank transfers, etc.
Payment data capture
After the customer selects their preferred payment method and provides the necessary payment details, the payment plugin securely captures this information and encrypts it to ensure data protection.
Communication with payment gateway
The payment plugin acts as an intermediary between Prestashop and the payment gateway. It forwards the encrypted payment data to the payment gateway for further processing.
Payment processing
The payment gateway receives the payment data, verifies the transaction, and communicates with the respective financial institutions or banks involved in the payment process.
Transaction status update
Once the payment is authorized and processed, the payment gateway sends a response back to the payment plugin, informing it about the transaction's success or failure.
Order completion
Based on the payment gateway's response, the Prestashop platform updates the order status and notifies the customer about the successful completion of the purchase or any issues encountered.
Payment plugins in WooCommerce:
Installation and configuration
Similar to Prestashop, merchants using WooCommerce can install payment plugins from the WordPress plugin repository or other trusted sources. The plugins are then configured with the necessary settings, such as API credentials from the payment processor.
Customer checkout
During the checkout process on the WooCommerce-powered website, customers are presented with various payment options provided by the installed payment plugins, including credit/debit cards, digital wallets, and more.
Payment data capture
Once the customer selects a payment method and enters their payment details, the payment plugin securely captures and encrypts this data.
Communication with Payment Gateway: The payment plugin communicates with the payment gateway, sending the encrypted payment data for processing.
Payment processing
The payment gateway receives the payment information, validates the transaction, and interacts with the relevant financial institutions or banks to complete the payment.
Transaction status update
After processing the payment, the payment gateway sends a response back to the payment plugin, indicating whether the transaction was successful or not.
Order completion
Based on the payment gateway's response, WooCommerce updates the order status and notifies the customer about the outcome of the payment process.
Both Prestashop and WooCommerce provide a wide range of payment plugins, allowing merchants to integrate with multiple payment gateways and cater to diverse customer preferences. These plugins streamline the payment process, ensuring a seamless and secure shopping experience for customers while helping merchants manage their online transactions efficiently.
How to choose the right payment plugin?
1. Payment security and compliance
When selecting a payment plugin for your Prestashop or WooCommerce store, prioritizing security and compliance is paramount. Ensure that the plugin is PCI-DSS compliant to safeguard cardholder data and maintain customer trust. Research the reputation and security measures of the payment gateway provider to ensure a reliable and secure transaction process.
2.Geographical considerations
Different payment plugins support specific countries and regions. Verify whether the payment methods cater to your target audience and if they support the currencies relevant to your business. Consider using regional payment methods to cater to local customers effectively.
3.Cost and transaction fees
Payment gateways often come with transaction fees. Compare the pricing structures of different plugins to understand the cost implications on your business. Some plugins may have a flat transaction fee, while others may have a percentage-based fee on each transaction.
4. User experience and integration
A seamless checkout experience can significantly impact customer satisfaction and cart abandonment rates. Look for payment plugins that offer a smooth integration with your e-commerce platform and maintain a consistent user experience throughout the payment process.
Installing and Configuring Payment Plugins
1.How to install the Prestashop payment plugin?
（1）Log in to your Prestashop admin panel.
（2）Navigate to the "Modules and Services" section.
（3）Click on "Add a new module" and upload the plugin's ZIP file.
（4）Once uploaded, click "Install" to activate the plugin.
（5）Configure the plugin settings as per the provided documentation.
2.How to install the WooCommerce payment plugin?
（1）Log in to your WordPress admin dashboard.
（2）Go to "Plugins" and click on "Add New."
（3）Search for the desired payment plugin using the search bar.
（4）Click "Install Now" and then "Activate."
（5）Configure the plugin settings by providing the necessary credentials.
Any questions?
In conclusion
Understanding how payment plugins work is essential for e-commerce success. These plugins play a vital role in ensuring secure and efficient transactions between customers and businesses. Whether you're using Prestashop or WooCommerce, selecting the right payment plugin is crucial to deliver a seamless checkout experience.
By prioritizing security, considering geographical factors, and understanding transaction costs, you can empower your online stores with the perfect payment solution. With Prestashop and WooCommerce offering a wide range of payment plugins, you can cater to diverse customer preferences and manage their online transactions efficiently.
In the ever-evolving world of e-commerce, payment plugins remain the backbone of a successful online business, unlocking the true potential of seamless and secure transactions. By harnessing their power and leveraging their capabilities, you can elevate your e-commerce venture to new heights, delighting customers and reaping the rewards of a well-optimized payment process.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.