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remove superfluous screenshot and fix typos #1
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nelsonic committed Dec 30, 2022
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Expand Up @@ -14,36 +14,35 @@ and how you can add it to your application!

# Why? 🤷

Not all applications are free.
There are some that can be acquired through
a [one time purchase](https://git-fork.com/buy).
There are others
that are [subscription-based](https://www.crunchyroll.com/welcome).
Regardless of the type, all of these share one thing in common:
**they use payment processing platforms/gateways
to manage transactions**.
Sadly, not all applications can be "free";
The software engineers that build them need to be paid
and the servers that host them aren't free either.

Some apps are sold via **one time purchase**.
Others are subscription-based.
Regardless of the type,
all of these share one thing in common:
**they use payment processing gateways
to collect funds**.

In any current application,
knowing how processing payments *work*
and how they *can* be implemented
knowing how processing payments work
and how they can be implemented
is important,
as it affects the bottom-line
of the project/application/company.

# What 💭

Let's think for a minute of what happens
Consider what happens
when we purchase something online.
Assume we want to [buy Postico2](https://eggerapps.at/postico2/),
Assume we want to buy a product online
e.g:
[Postico2](https://eggerapps.at/postico2/),
a PostgreSQL database editor.

<img width="1214" alt="buy-1" src="https://user-images.githubusercontent.com/17494745/209847803-5fae9197-afed-46c3-9746-5faaac73fe6f.png">

If we click the `Buy Postico 2` button,
we are redirected to a page where we can buy a license.

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

If we proceed to payment,
we can pay with a credit card or Paypal.

Expand All @@ -53,7 +52,7 @@ But how was this implemented?
Is there any service behind this?
For those with a keen eye,
you might have noticed
that in the upprt third of the screen,
that in the upper third of the screen,
it seems that this transaction
is being handled by
[`MyCommerce.com`](https://www.mycommerce.com/).
Expand All @@ -69,24 +68,22 @@ to provide different ways of users to pay
and integrate payments *seamlessly* in our applications.

But, as you may be aware,
there are several other SaaS providers,
such as [`Stripe`](https://stripe.com/en-pt)
or [`Square`](https://squareup.com/us/en/).
Each one of these may differ from each others.

But we are getting ahead of ourselves.
We need to clarify some concepts before moving forward.
there are several other Payment processing providers,
such as
[`PayPal`](https://developer.paypal.com/api/rest/),
[`Stripe`](https://stripe.com)
or
[`Square`](https://squareup.com/us/en/).

Ready to start? 🏁

## How payment works
## How Payment Works

Let's start with an analogy.
Imagine you want to send a parcel to your father.
Imagine you want to send a parcel to someone.
1. You first drop it in a DHL (or UPS) drop-off point.
2. DHL collects the package and transports the parcel to your father.
2. DHL collects the package and transports the parcel.
3. Once the delivery is complete,
a confirmation e-mail is sent to you and your father.
a confirmation e-mail is sent to you and the recipient.

Think of the DHL distribution network
as analogous to a **payment processor**.
Expand All @@ -103,34 +100,34 @@ into the merchant's bank account.

So, a **payment processor** functions as an intermediary
between the customer's party
(which consists of the user and his bank)
and the merchant's
(which consists of the merchant and his bank).
(which consists of the buyer and their bank)
and the merchant
(which consists of the merchant and their bank).
It is the entity responsible for communicating
between both parties in the transaction.

Meanwhile, the **payment gateway**
is a *point of sale* for online payments.
Similarly to when a customer swipes his card
Similarly to when a customer swipes their card
on a physical credit card terminal,
online stores need a gateway to securely collect
the customer's payment information.
So *payment gateway is basically a virtual terminal,
So *payment gateway is a virtual terminal,
and functions as a point of sale*.

This whole process of online payment
usually assumes the merchant
has a [**merchant account**](https://www.investopedia.com/terms/m/merchant-account.asp).
has a
[**merchant account**](https://www.investopedia.com/terms/m/merchant-account.asp).
A merchant account is simply
a type of business bank account
that *allows a business
to receive credit card
and electronic transactions*.

Do note that the terms `"payment processor"` and `"payment gateway"`
> **Note**: the terms `"payment processor"` and `"payment gateway"`
usually fall under the same term - `payment processor`.
This is because they work together in achieving
the payment processing.
This is because they work together to handle payment processing.
So if you see platforms like `Stripe`
being mentioned as a "payment processor",
it's because it offers both `payment gateway` and `payment processor`
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