Online Payment Gateway System
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This document provides an overview of online payment gateways. It discusses how payment gateways work by transmitting transaction data between merchants, customers, and financial institutions to authorize payments. It also describes typical transaction processes, security measures used, and examples of major payment gateway services like PayPal. Common functions of payment gateways are processing credit card payments, protecting sensitive data, and facilitating real-time authorizations.
Online Payment Gateway System
- 1. PRESENTATION ON ONLINE PAYMENT GATEWAY SYSTEM
- 2. INTRODUCTION ļ¢ 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 acquirer for authorization and settlement.
- 3. ā¢ It includes whether there are sufficient funds available, whether the details all matched correctly and whether the has been any fraudulent activity. ā¢ In order to check these details, the Payment Gateway will communicate with the Card Schemes and Issuing Banks. ā¢ And then report back with its findings and relevant transaction response.
- 4. ļ¢ Merchants gain the ability to perform real-time Credit Card authorizations from a web site over the Internet. ļ¢ Customers can pay for purchases across the Internet through Credit Cards within seconds, after the gateway obtains authorization from the Credit Card institutions.
- 6. EXAMPLE ļ¢ Payment gateway protect credit card details encrypting sensitive information such as credit card number. ļ¢ To insure that information passes securely between the customer and the merchant and also between the merchant and the payment process.
- 8. CONTIā¦..
- 9. SECURITY ļ¢ Customer is usually required to enter personal details, the entire communication of 'Submit Order' page is often carried out through HTTPS protocol. ļ¢ To validate the request of the payment page result, sometimes the IP of the requesting server has to be verified.
- 12. ļ¢ PayPal is an online payment service founded in 1998 and owned by eBay. ļ¢ It facilitates the transfer of money from one party to another over the internet. ļ¢ Payments can be made for goods, services, and online donations can be made as well.
- 13. ļ¢ PayPal processes millions of dollars every day, and recently exceeded $6 million per day in mobile transactions alone. ļ¢ PayPal is a fast, simple, and secure way to make a payment online.
- 14. PAYPALWORKING
- 15. PAYMENT NETWORK PROVIDES PROCESSES AND SERVICES 15 Processes āŗ Authorization ā the process of verifying a customerās credit card āŗ Settlement ā the process of collecting funds from the customerās account Services āŗ Payment Processing Service ā connects merchants, customers, and banks through secure online transactions. āŗ Gateway ā the secure pipe between the banks and the processor
- 16. AUTHORIZATION Payment Processing Service 2 7 6 5 Customer Merchant 8 1 Processor 3 Customerās issuing bank 4 1. Customer decides to make an online purchase and inputs credit card information 2. Merchantās 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 customerās 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 16 8. Merchant decides to accept or reject purchase
- 17. 2 SETTLEMENT Payment Processing Service Processor 5 6 4 Customerās issuing bank Merchantās acquiring bank 1 Merchant Customer 3 7 1. Merchant informs the payment processing service to settle transactions 2. Payment processing service sends transaction information to the processor 3. Processor checks the information and forwards settled transaction information to the issuing 17 bank 4. Issuing bank transfers funds to the processor 5. Processor routes funds to the acquiring bank 6. Acquiring bank credits merchantās bank account 7. Issuing bank includes merchantās charge on customerās credit card account
- 18. WHY PAYPAL? ļ¢Grow sales ļ¢Get new customers ļ¢ Integrate easily
- 19. PROTECT YOUR BUSINESS AGAINST FRAUD 19 Transaction Level ā¢ Ensure each transaction you accept and process is valid, and be careful in reviewing suspicious transactions because some may be valid. Account Level ā¢ Make sure only authorized users have access to your payment gateway account, and be alert for suspicious account access patterns. Network Level ā¢ Ensure your perimeter is defended against unauthorized access.
- 21. ļ¢ Founded in 2001 ļ¢ It is the largest Payment Gateway in India today. ļ¢ Currently powers more than 85% of the e-commerce merchants in the country. ļ¢ It provides complete, simple and secure online payment gateway services.
- 22. ļ¢ It is a Commerce Service Provider, authorized as a Master Merchant, by Indian financial institutions, to appoint Sub Merchants, to accept and validate Internet payments via Credit Card. ļ¢ This enables the websites to transact and accept payments online and in real time.
- 24. STEPS TO CREATE MERCHANT ID WITH CCAVENUE ļ¢ Step 1: Initial Site Setup ļ¢ Step 2: Registration and Document Submission ļ¢ Step 3: CCAvenue issues a Merchant ID ļ¢ Step 4: Mapping Merchant ID to URL ļ¢ Step 5: Integration
- 25. THANK YOU
Editor's Notes
- #3: A payment gateway is an e-commerce application service provider service that authorizes credit card payments for e-businesses, online retailers, etc. The online Payment Gateway will authorize or decline a card payment.
- #13: This service is not free; however PayPal onlyĀ takes a small percentage of the moneyĀ whenever a transfer is made.Ā
- #20: 1. Ensure each transaction you accept and process is valid, and be careful in reviewing suspicious transactions because some may be valid Authenticate buyers when possible Screen orders for fraud patterns Review suspicious transactions 2. Make sure only authorized users have access to your payment gateway account, and be alert for suspicious account access patterns Lock down administrative access Monitor account level activity for suspicious patterns 3. Lock down network access Update all patches on servers and operating systems Monitor firewall activity
- #22: No wonder the majority of Indian e-commerce merchants choose CCAvenue, the tried and tested payment gateway over other newbie gateways with tall claims!
- #23: It also provides e-business solutions to Indian websites, with real time Credit Card, Debit Card, Net Banking, Cash Card and Mobile Payment transaction validation.