1.

Initiation:

 Stakeholder: Payer (Customer)

 The customer initiates a payment for goods or services.

2. Transaction Request:

 Stakeholder: Payee (Merchant)

 The merchant sends a transaction request to the payment gateway, providing details like
the transaction amount and payment method.

3. Encryption and Transmission:

 Stakeholder: Payment Gateway

 The payment gateway encrypts sensitive information and forwards the transaction
details to the acquiring bank for authorization.

4. Authorization:

 Stakeholder: Acquiring Bank, Card Networks, Issuing Bank

 The acquiring bank sends an authorization request to the card network.
 The card network communicates with the issuing bank to check the customer's account
for sufficient funds.
 Authorization response is sent back through the acquiring bank and the payment
gateway to the merchant.

5. Payment Approval:

 Stakeholder: Payment Gateway, Merchant

 If authorized, the payment gateway communicates the approval to the merchant, and
the merchant can proceed with order fulfilment.

6. Capture and Settlement:

 Stakeholder: Acquiring Bank, Issuing Bank

 The merchant, through the payment gateway, captures the authorized funds.
 Settlement involves the actual transfer of funds from the customer's account (issuing
bank) to the merchant's account (acquiring bank).

7. Confirmation:

 Stakeholder: Payment Gateway, Merchant, Customer

 The payment gateway generates a confirmation or receipt, which is sent to both the
customer and the merchant.

8. Chargeback Handling:

 Stakeholder: Payment Gateway, Acquiring Bank, Issuing Bank

 In case of disputes or chargebacks, the payment gateway may be involved in managing
the resolution process between the acquiring and issuing banks.
9. Reporting and Reconciliation:

 Stakeholder: Payment Gateway, Merchant, Acquiring Bank

 The payment gateway provides transaction reports to the merchant and the acquiring
bank for reconciliation and accounting purposes.