2. Online payment refers to money that is
exchanged electronically. Typically, this involves
use of computer networks, the internet and digital
stored value systems.
Benefits of Using Online Bill Pay
EASY
COST-SAVING
CONVENIENT
2
4. 4
Merchant
3 . Merchant software
contacts clearing house
2. Secure connection
through Internet to
merchant
1. Customer makes purchase
Merchant Bank
Consumer’s Credit
Card Issuing Bank
4 . Clearinghouse
verifies account &
balance with issuing bank
5 .Monthly statement issued
with debit for purchase
6 . Issuing
bank credits
merchant
account
Secure Line
Clearing House
5. Online Banking
Online banking is an electronic payment system that
enables customers of a financial institution to conduct
financial transactions on a website operated by the
institution, such as a retail bank, virtual bank, credit
union or building society.
5
7. Who can use internet banking ?
Step 1: Access Internet Banking - Obtain your User
ID and Passwords.
Step 2: Create your Own Unique User ID.
Step 3: Link the Account Number to your User ID
7
8. working
Service That Gives Bank Account Details
Web server of
Bank
Bank Data Base
Internet
User
SSL connection
8
15. What is SSL?
SSL stands for Secure Socket Layer
Payment Gateways encrypt sensitive
information, such as credit card numbers,
to ensure that information passes securely
between the customer and the merchant.
SSL used HTTPS protocol.
15
16. HOW IT WORKS IN BROWSER:
Any
HTTPS
questions???
www.gmail.com
16
17. HOW IT WORKS IN BROWSER: HTTPS
Any
WITHOUT CERTIFICATION
questions???
https://www.varsityadmission.com/
17
18. HOW IT WORKS IN BROWSER: HTTPS
Any
WITHOUT CERTIFICATION
questions???
18
Video
19. What is Payment Gateway?
A payment gateway is a software program integrated to
a merchant's website to transmit transaction data to:
• Credit Card/Debit Card
• Net Banking
• Mobile Payment
acquirer for authorization and settlement
19
20. Payment Process
A payment process is nothing but an transaction
of money between the users and merchant
(owner of the product).
In payment process we need there are 2 types
of accounts.
Business Account (user)
Merchant Account (owner)
20
21. 1
• It includes whether there are sufficient funds
available, whether the details all matched
correctly and whether the has been any fraudulent
activity.
2
• In order to check these details, the Payment
Gateway will communicate with the Card Schemes
and Issuing Banks.
3
• And then report back with its findings and relevant
transaction response.
21
22. The Payment Gateway Workflow should be
inserted before the checkout.
After the confirm order page will the
payment gateway workflow be activated
Check out Continue
Before Confirm Order
Confirm
Before Check Out
After Check Out
22
24. Authorization
Payment
Processing
Service
2
7
6
5
Customer
Merchant
8
1 Processor
3
Customer’s
issuing bank
4
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
24
26. Settlement
2
Payment
Processing
Service
Processor
5
6
4
Customer’s
issuing bank
Merchant’s
acquiring bank
Merchant
Customer
1
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
bank
4. Issuing bank transfers funds to the processor
5. Processor routes funds to the acquiring bank
6. Acquiring bank credits merchant’s bank account
7. Issuing bank includes merchant’s charge on customer’s credit card account
26
27. Gateway advantages
Less fraud (but there are many stolen credit card numbers
floating around)
Money is normally deposited into merchant bank account
automatically
Reports and refunds normally allowed via browser by
gateway company
27