diff --git a/README.md b/README.md index a1fda19..ca3ef43 100644 --- a/README.md +++ b/README.md @@ -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. buy-1 -If we click the `Buy Postico 2` button, -we are redirected to a page where we can buy a license. - -buy-2 - If we proceed to payment, we can pay with a credit card or Paypal. @@ -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/). @@ -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**. @@ -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`