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Got an Online Business? Here’s what to Know about the eCommerce Credit Card Payment System in Nigeria

Payment cards like debit and credit cards are currently the most popular payment methods customers use when shopping online. However, if you’re a business in Nigeria, you may be more familiar with debit card payments than credit cards.

That’s why we’ll be covering the most important facts to know about the eCommerce credit card payment system and how to accept credit card payments in your online shop.

How does eCommerce Credit Card Payment System Work?

When a customer checks out and makes a payment on an online store, a credit card payment system uses a complex processing sequence to communicate payment information between parties involved in the payment transaction. The payment processing system encrypts and routes card data between the bank that issued your customer’s credit card (issuing bank) and the bank where your business receives payment (acquiring bank). This service is usually provided by a financial technology company also known as a credit card or payment card processing company.

Here are the steps involved in processing an eCommerce Card Payment:

Step 1: The customer checks out of an eCommerce store and inputs his credit card payment information.

Step 2: The credit card processing company encrypts and sends the customer’s card information to the appropriate payment scheme e.g VISA or Mastercard.

Step 3: The payment scheme sends instructions regarding the transaction to the credit card issuing bank requesting authorization.

Step 4: Once the transaction is authorized, a hold is placed at the issuing bank for the amount until the funds are transferred to the acquiring bank.

Step 5: Funds are deposited in the merchant’s account minus processing fees.

Why should you get an eCommerce Credit Card Payment System For Your Online Business in Nigeria?

eCommerce is virtually impossible without a credit card processing system as it plays a crucial role as an intermediary in sending payment instructions and transaction details between banks until payment is completed and funds have been moved. Here are the most important benefits of having a credit card payment system for your eCommerce business:

  • Seamless payment experience for customers.
  • Preventing fraud and protecting customers’ information.

Difference Between an eCommerce Credit Card Payment System and a Payment Systems

Payment gateways work together with credit card payment systems to complete an online transaction, however, the major difference in their function is that a payment gateway is responsible for receiving the customer’s credit card information, which it then sends on to the credit card payment processing system. If the payment is approved or declined, the payment gateway is also responsible for communicating this to the customer. On the other hand, the credit card payment processing system facilitates and executes the transaction by communicating directly with the customer’s bank, receiving authorisation and relaying the information to the merchant’s bank for funds to the deposited in the merchant’s account.

How to choose an eCommerce Credit Card Payment System for your online business

If you’re setting up an eCommerce store, it is important for you to research and compare the available credit card payment systems before choosing the right platform to integrate with your store. Here are six things to consider before you pick a credit card processing service provider:

  1. How much do they charge as their monthly processing fees?
  2. How easy will it be to integrate their platform into your eCommerce store?
  3. Do they have strong technical and customer support available 24/7?
  4. Can the platform protect buyers from fraud and security breaches?
  5. What types of cards and payment options are available on the platform?

Best eCommerce Credit Card Payment System in Nigeria

The right eCommerce credit card payment system simplifies online payments for customers while providing security for their financial information, which is why we recommend choosing Chamsswitch, one of the most reliable payment processing platforms in Nigeria which is easily integrable into any shopping platform. Chamsswitch orchestrates all aspects of payment processing for in-store and eCommerce transactions and accepts payments from debit cards, credit cards, prepaid cards, mobile wallets and many others. Chamsswitch also facilitates international transactions in multiple currencies while fighting fraud and protecting cardholders’ data.

Visit to learn more about how you can enable a seamless payment experience for your eCommerce business.