A payment gateway, as what its name suggests, provides the channel in which encrypted information is exchanged between the consumer, the merchant account provider, the merchant, the acquiring bank and the issuing bank. This makes sure the information exchanged is accurate and that it will be exclusively used by the involved parties only.
A chargeback often results from a dispute between the customer and the merchant. This is when a transaction is returned by the costumer into the acquiring bank, and ultimately, to the merchant. A customer files a chargeback when he/she finds that the product does not meet his/her expectation, when the product was not delivered properly or was not delivered at all, or when the transaction itself is fraudulent. The merchant may avail a chargeback insurance to protect himself/herself in the event of a chargeback.
Electronic Commerce or eCommerce basically refers to the commercial activities that are carried out through the internet. Aside from selling, it also includes activities like inventory management, supply chain management, exchange of business information and management of online funds. Due to the increased flux of businesses taking advantage of the accessibility of the internet, there was also an increase of ecommerce merchant account providers.
Some ecommerce merchant account providers do more than managing the transactions between the consumers, the acquiring bank and the issuing bank. They also take care of the technical side of putting up the online store, like website hosting, maintenance and design.