eCommerce Infrastructure

(Credit Card Payment Processing Concepts)

Payment Processing: Defined

On-Line Payment Processing
Coordinating the flow of secured
transactions among a complex network of
processors and financial institutions

eCommerce
The buying and selling of products and
services by businesses and consumers
over the internet
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Payment Processing: Components

Cardholder
/ Customer

Cardholder
Issuing Bank

Processor

Payment Gateway

Acquiring Bank

Credit Card
Associations
Merchant

Settlement

Merchant Bank
3

Payment Processing: Phases

Authorization

Verifies that the card is active

Verifies Cardholder has sufficient credit
Cardholders Open-To-Buy is reduced

Settlement (Batch Deposit)

Capture

Cardholder account is charged

$$ deposited to Merchant Bank Acct
4

Putting it all together: Authorization

Merchant

Payment
Gateway

Cardholder
/ Customer

Processor

Merchant

Cardholder
Issuing Bank
Payment Gateway Processor

Putting it all together: Settlement

Acquiring
Bank

Merchant
Bank

Merchant

Payment
Gateway

Processor

Cardholder
Issuing Bank

Cardholder
/ Customer
6

Infrastructure: Components
IBM WebSphere Payment Manager
Wintel Servers
IBM HTTP Server (Apache)
IBM WebSphere Application Server
IBM DB2 Database
JAVA Programming Environment
7

Infrastructure: Components
Internet
(https)
eCommerce
Web App

Web Server
Wintel
Servers

Java/
J2EE

App Server
Payment
Gateway

Database

Payment Mgr
8

Payment Processing: Fraud

Card Present vs. Card Not Present
Authorization vs. Address
Verification (AVS)
Card Verification Value (CVV)

Fraud Protection Programs

9

Payment Processing:
Summary
Coordinating the flow of
secured transactions among
a complex network of
processors and financial
institutions

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