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ON
ONLINE PAYMENT
GATEWAY SYSTEM
INTRODUCTION
A payment gateway is a software program integrated
to a merchant's website to transmit transaction data
to:
Credit Card
Net Banking
Cash Card
Mobile Payment
Processes
► Authorization – the process of verifying a
customer’s credit card
Services
► Payment Processing Service – connects
merchants, customers, and banks through secure
online transactions.
15
AUTHORIZATION
Payment
Processing
Service
3
2 7
6
Merchant 4 5
Customer’s
issuing bank
8
Customer 1 Processor
1. Customer decides to make an online purchase and inputs credit card information
2. Merchant’s website receives customer information and sends it to a payment processing service
3. Payment processing service routes information to processor
4. Processor routes information to bank that issued customer’s credit card (issuing bank)
5. Issuing bank sends authorization (or declination) to processor
6. Processor routes transaction results to payment processing service
7. Payment processing service sends results to merchant
8. Merchant decides to accept or reject purchase
16
SETTLEMENT
Payment
Processing
Service
1 7
3 4
Customer’s
Merchant issuing bank
5
Processor Merchant’s
6 acquiring bank
Customer
Integrate easily
PROTECT YOUR BUSINESS AGAINST FRAUD
• Ensure each transaction you accept and process is
valid, and be careful in reviewing suspicious
Transaction transactions because some may be valid.
Level
19
Founded in 2001
Step 5: Integration
THANK
YOU