By J.

ZAVERI
E-Payments 1

Online Payment Processing Basics
Online Purchase USING WEBSITE
quick and easy, instantaneous.

Merchants (SELLER) must connect to a network of banks (both acquiring and issuing banks), processors, and other financial institutions so that payment information provided by the customer can be routed securely and reliably. The solution is a payment gateway that connects the online store to these institutions (e.g. bank) Payment information is highly sensitive
Trust and confidence are essential. So gateway should be provided by a company with in-depth experience in payment processing and security (e.g. VISA)
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e-payment or ONLINE PAYMENT PROCESS
Information is encrypted

CLIENT BROWSER

MERCHANT’S SERVER

CUSTOMER BROWSES E-COMMERCE WEBSITE

PAYMENT SERVER

CREDIT CARDS e.g. VISA
www.dnserp.com

BANK ACCOUNTS e.g. ICICI, SBI, HDFC

PRIVATE LABEL CARDS e.g. J.C. PENNY
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Credit cards
Represents an account that extends credit to consumers, permits them to purchase items while deferring payment, and allows payments to multiple vendors at a time. Credit card associations – Visa Issuing banks (process transactions)- Citibank Processing centers (clearing house)- verify accounts and balances : 3rd party. OR DEBIT CARD
INSTANT DEBIT
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# Credit cards #
The parties involved : Consumer / CUSTOMER (BUYER) Merchant Web server (SELLER) Payment gateway Merchant’s bank (SELLER) Consumer’s card issuing bank (BUYER’S BANK)

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What is SSL?
SSL is an abbreviation for Secured Socket Layer SSL technology secretly encodes (or encrypts) information as it is being sent over the Internet between your computer and Bank's Server computer system This encryption technology is designed to ensure that account information travels securely over the Internet and remains confidential.

www.dnserp.com

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The transaction processing
1: Consumer makes purchase 2: SSL provides secure connection through internet to merchant server 3: Merchant software contacts clearing house 4: Account verification done by C/H 5: Issuing bank credits merchant account 6: Monthly statement issued with debit for purchase.

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Front side of Credit Card:

(1)

is the bank logo. (2) is the EMV chip (commonly referred to as 'Chip And Pin') (3) is the Hologram (4) is the 16 digit card number (5) is the logo of the card type (6) is the expiry date (7) is the name of the cardholder
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A diagram showing the reverse side of a typical credit/debit card.

(1) is the magnetic stripe. (2) is the signature strip (3) is the CVC2 code

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Credit Card Issuing Banks in India
HSBC ICICI Bank Deutsche Bank SBI Barclays Bank Canara Bank Standard Chartered Amex HDFC Kotak Mahindra ABN Amro American Express Axis Bank Bank o Baroda City Bank.
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Type
Type Founded Headquarters Area served Public (NYSE: MA) 1966 Purchase, New York, United States Worldwide Richard N. Haythornthwaite (Chairman) Robert W. Selander (CEO, President & Director) Financial services Payment systems US$27.36 billion (2008) ▲ US$5 billion (2008) ▲ US$1.108 billion (2007) ▲ US$1.085 billion (2007) ▲ US$6.260 billion (2007) ▲ US$3.027 billion (2007) 5,000 (2008)

Public (NYSE: V) Delaware (1970) San Francisco, California Joseph Saunders (Chairman, CEO) John (Hans) Morris (President) Byron Pollitt (CFO) John Partridge (COO) Financial Services Payment systems US$ 75.20 billion (2008) ▲US$3.5898 billion (2007) ▼US$-1.449 billion (2007) ▼US$-1.076 billion (2007) ▲US$4.390 billion (2007) ▼US$-501.33 million (2007) Visa.com 12

Founded Headquarters

Key people

Key people

Industry Products Market cap Revenue Operating income Net income

Industry Products Market cap Revenue Operating income Net income Total assets Total equity Employees Website

Total assets Total equity Website

MasterCard.com

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Bitter facts of Plastic money!!!
ICICI Bank, lost more than Rs 11 crore due to over 8,000 cases of credit card frauds last year. A total of 703 and 2,484 cases were received by American Express Bank and HSBC Bank related to credit card frauds, in which they lost Rs 6.04 crore and Rs 4.90 crore, respectively. Citibank, which lost Rs 4.73 crore, Standard Chartered Bank Rs 2.39 crore and Deutsche Bank with a loss of Rs 2.09 crore
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$ Payment gateway $
A service that provides connectivity among merchants, customers, and financial networks to process authorizations and payments. The service is usually operated by a third-party provider such as VeriSign. A gateway that translates SET messages to and from standard bank financial data formats.

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Why is Payment Gateway needed?
Payment Gateway holds the essence of any ecommerce site. One cannot think of making or receiving on-line payments without a Payment Gateway. Payment Gateway basically refers to an e-commerce service that authorizes payments for e-businesses & online retailers. It, in a way, represents a physical POS (Point-of-sale) terminal located in most retail outlets. Payment gateways encrypt sensitive information, such as credit card numbers to ensure that information passes securely between the customer and the merchant.

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Alternative payment solutions
P2p = Person-to-person (No account- only mail) like www.PayPal.com Multicurrency credit card acceptance services <planetpayment.com> Token Value and Store-Based Credit
www.internetcash.com

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Digital Wallets http://www.webewallet.com/faq.cfm Smart cards (embedded chips to verify the card’s presence in a smart card reader).
Visa: Fusion card

MasterCard: Mondex American express: Blue Auction resources <eBay.com> & <ubid.com> electronic bill presentment and payment (EBPP) <cybercash.com> & < checkfreecorp.fiserv.com>

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THANK$ A MILLION
JYOTINDRA ZAVERI Twitter handle @followERP www.dnserp.com

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