What it means
With an API, your system asks another system for updates. With a webhook, the other system tells yours the moment something happens. You give it a web address, and it sends a small message, usually JSON, each time the event occurs.
Payment providers, stores, CRMs and form tools all offer webhooks for events such as "payment succeeded" or "order created".
Why it matters for a business
Webhooks make integrations instant and efficient, because there is no need to check for changes constantly. They also need care: messages can arrive twice, out of order or not at all if your system is down.
A business example
Things to watch
-
Verify each webhook's signature before trusting it.
-
Handle duplicates so the same event is not processed twice.
-
Respond quickly and process heavy work in the background.
-
Log and replay failed events.