eCommerce Jargon Translator
Affiliate
An affiliate is an individual or company that promotes products and services for a merchant, in return for a commission.
eCommerce
eCommerce can be generally defined as:
- The buying and selling of goods and services over the Internet
- The transfer of funds through the Internet
Checkout Process
Refers to the process a customer must go through to purchase a product or service from your website.
Conversion Rate
Conversion rate refers to the percentage of visitors who take a desired action. From an eCommerce perspective, this means the number of browsers to your site who convert into buyers.
Internet Merchant Account
An Internet merchant account is an account created by a bank or financial institution to receive online credit card payments.
Manual/Offline Transaction
A transaction which is processed offline after an order has been received. For example, a merchant may receive an order via telephone, mail order or email and process the transaction with an EFTPOS terminal.
Payment Gateway
A payment gateway charges your customers credit cards via the web and sends the funds to your merchant account.
Payment Processor 3rd Party
Third party processing services are basically a payment gateway and merchant account rolled into one.
The difference is a payment processor does not require you to have an Internet merchant account and can settle funds to a regular bank account.
Privacy Policy
A Privacy Policy is a disclaimer placed on a website informing users about how the website collects and stores a user's personal information.
Real Time Transaction
A 'real time' transaction is one which is processed immediately (as opposed to a manual transaction which is processed offline after an order has been received).
Shopping Cart Software
A shopping cart is a system which enables you to sell your products and services on the web.
SSL Encryption / Secure Server
SSL stands for Secure Sockets Layer and is a system for securing and transferring private information via the Internet.
SSL works by encrypting your data and transferring it over a secure connection. 128 bit is the industry standard and refers to the level of protection a website offers.
Terms & Conditions
Terms and Conditions on your website specify:
- How visitors can use your website: For example you may state that the user agrees not to copy any materials on the site.
If your website is only suitable for adults you may state that users have to be 18 and over to use the site.
- Purchase Policies: You should clearly state any purchase policies including warranty, shipping, refunds and returns.
Anything else of significance, including waiver of warranties, limited liability, indemnification, grounds for termination of service, etc.
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