Also called: Electronic commerce, eCommerce, Ecommerce payments, Online payment processing, Online payments
What e-commerce is
E-commerce, short for electronic commerce, is buying or selling goods and services over the internet. It includes a customer ordering a physical product from your website, paying for an online appointment, or buying a digital service. Your business can sell online only or combine online sales with a physical storefront.
An online sale and an online payment are related, but not identical. E-commerce describes the sale; payment processing is the system that collects the customer’s payment and routes it for approval. Customers can pay with cards, digital wallets, bank transfers or other methods your checkout supports.
Online sales add card-not-present costs and security duties, but your processor markup is still negotiable.
How an online card payment works
At checkout, your customer enters card details or selects a saved payment method. A payment gateway securely passes the payment data to a processor, which sends an authorization request through the card network to the customer’s bank. The bank approves or declines the request, and the response returns to your checkout.
An approval lets you confirm the order, but it does not mean the funds have reached your bank account. The approved transaction must be captured and settled. Funds can take a few working days to arrive, so the order date and deposit date may differ. Reconcile each deposit against your orders and processing records to catch missing, delayed or mismatched payments.
What it means for your costs
Online card sales are card-not-present transactions because you do not read the card at a physical terminal. Card acceptance costs have three layers: interchange paid to the issuing bank, network fees paid to the card network, and your processor’s markup. Only the markup is negotiable. The card type, transaction details and pricing arrangement affect the total charged.
A blended rate combines underlying costs and markup into one number, which makes it harder to see what you are paying for. On an interchange-plus plan, compare the listed interchange and network charges with the processor markup. Compare online card costs separately from in-person sales so different transaction types do not hide changes in your bill.
Security and disputes
Your online checkout handles payment data, so PCI DSS applies when you accept card payments. PCI DSS v4.0.1 is the current version as of 2026. The 51 future-dated requirements became mandatory on March 31, 2025, including controls for scripts on e-commerce payment pages and multi-factor authentication for access to the cardholder data environment. Processors commonly add a monthly PCI non-compliance fee when a business has not validated compliance.
An online sale can also lead to fraud reports or a chargeback. Under Visa and Mastercard rules, cardholders generally have 120 calendar days to dispute a transaction, with longer limits for some delayed-delivery cases. Your response window is set by your processor and is often 20 to 30 days. Keep order confirmations, delivery records, clear refund terms and customer-service records so you can respond with evidence.
What you can actually change
- Separate online costs. Compare card-not-present sales with in-person sales on your processing records. On your statement, identify interchange, network fees and processor markup rather than treating every charge as one rate.
- Review your markup. Focus negotiations on the processor markup, since interchange and network fees are not negotiable. Compare the markup with your agreement and look for added per-transaction, gateway or monthly charges.
- Validate PCI compliance. Confirm that your business completed the required PCI DSS validation. Check your statement for a monthly PCI non-compliance fee and resolve the compliance status behind it.
- Keep order evidence. Save order details, delivery confirmation, customer communications and refund-policy records. Your processor’s dispute response window is often 20 to 30 days, so organize evidence where staff can retrieve it quickly.
Frequently asked questions
Is e-commerce the same as online payment processing?
No. E-commerce means buying or selling goods and services online. Online payment processing is the system that authorizes and settles a customer’s payment for an online order.
Are online card processing fees different from in-person fees?
Online card payments are card-not-present transactions, while in-person payments use a different transaction setting. Your total cost includes interchange, network fees and processor markup, so compare online and in-person costs separately.
When does an e-commerce payment reach my business bank account?
An approval confirms that the customer’s bank approved the payment request, not that your deposit has arrived. The transaction must be captured and settled first; funds can take a few working days to reach your account.