# How Ecommerce Payments Work > When a customer completes checkout, their payment does not move directly from their account to yours. It travels through a chain of services — gateway, processor, merchant account, acquiring bank, and issuing bank — each with a specific role in authorising and moving funds. - Type: Merchant guide - Level: Intermediate - Reading time: About 4 minutes - Audience: Written for store owners, builders, and designers refining high-performance ecommerce stores. - Last updated: 2026-11-04 - Canonical page: https://academy.getzenbasket.com/merchant-questions/how-ecommerce-payments-work/ - Part of: [Merchant Questions](https://academy.getzenbasket.com/merchant-questions/) on ZenBasket Academy --- ## What you need to know ### What happens when a customer pays? At checkout, the payment gateway encrypts and sends card details to the payment processor. The processor contacts the card network, which routes the request to the customer's issuing bank. The issuing bank approves or declines the authorisation. A successful response travels back through the same chain and the merchant receives a confirmation. ### What is a payment gateway? A payment gateway is the service that securely collects and transmits payment data from the store to the processor. It handles encryption, tokenisation and the initial security checks. Some providers bundle the gateway with processing; others offer them separately. ### What is a payment processor? The processor routes the transaction between the card network and the acquiring bank. It handles the technical communication that moves the authorisation request and response. Processing fees are charged per transaction and vary by provider, card type and country. ### What is a merchant account? A merchant account is a holding account provided by the acquiring bank where funds are held after capture before being transferred to the business's main bank account. Some modern payment providers use pooled arrangements that do not require a dedicated merchant account. ### What are acquiring and issuing banks? The acquiring bank partners with the merchant and holds the merchant account. The issuing bank is the customer's bank that issued their card. During a transaction, the issuing bank checks whether the customer has funds and approves or declines the authorisation request. --- ## Frequently asked questions ### Why does a payment show as pending for several days? Authorisation and settlement are separate steps. After authorisation, funds are reserved but not yet transferred. Settlement happens on a schedule, and the transfer to the merchant's bank account follows after that. Timing depends on the processor, payment method and bank. ### Why might a payment succeed at the gateway but still fail? The gateway may confirm it received and forwarded the data, while the processor or issuing bank later declines the authorisation. Always check the final status from the processor, not just the gateway response. ## Related articles - **Authorization, Capture and Settlement** - **Choosing Ecommerce Payment Methods** - [ZenBasket Build Guide](https://help.getzenbasket.com/zenbasket-builder/)