Summary Matrix

Attribute Order Transaction
Entity Scope Merchant purchase agreement contract 1-to-N Payment Gateway authorization/capture event
Created By Ecommerce Storefront / Cart Checkout Engine Payment Processor Gateway (Stripe, PayPal)
Data Points Line items, shipping address, discounts, taxes Gateway transaction ID, authorization code, card brand, risk score
Multiplicity Single Order record (1) Multiple Transaction records (N - Auth, Capture, Refund attempts)

Key Difference

An Order is the merchant’s contract with the buyer detailing what was purchased. A Transaction is a specific financial payment attempt processed through a payment gateway.

A single Order can have multiple Transactions (e.g. an initial authorization, a partial capture, and a subsequent partial refund).

Developer Takeaway

1-to-Many Schema Modeling: Model transactions as a child array or separate table related to `order_id` via a foreign key, rather than storing gateway authorization IDs directly on the order row.