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Ecommerce Infrastructure (: Credit Card Payment Processing Concepts)

Payment processing involves coordinating secure transactions between customers, merchants, and financial institutions. It has several key components and phases: authorization verifies the card and available funds, while settlement captures the transaction and deposits funds to the merchant. Infrastructure for ecommerce payment processing includes servers, databases, and payment management software to securely transmit transactions through a payment gateway between customers, merchants, and issuing/acquiring banks.

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Harshi Agarwal
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47 views

Ecommerce Infrastructure (: Credit Card Payment Processing Concepts)

Payment processing involves coordinating secure transactions between customers, merchants, and financial institutions. It has several key components and phases: authorization verifies the card and available funds, while settlement captures the transaction and deposits funds to the merchant. Infrastructure for ecommerce payment processing includes servers, databases, and payment management software to securely transmit transactions through a payment gateway between customers, merchants, and issuing/acquiring banks.

Uploaded by

Harshi Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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eCommerce Infrastructure

(Credit Card Payment Processing Concepts)

Payment Processing: Defined


On-Line Payment Processing
Coordinating the flow of secured
transactions among a complex network of
processors and financial institutions

eCommerce
The buying and selling of products and
services by businesses and consumers
over the internet
2

Payment Processing: Components

Cardholder
/ Customer

Cardholder
Issuing Bank

Processor

Payment Gateway

Acquiring Bank

Credit Card
Associations
Merchant

Settlement

Merchant Bank
3

Payment Processing: Phases


Authorization

Verifies that the card is active


Verifies Cardholder has sufficient credit
Cardholders Open-To-Buy is reduced

Settlement (Batch Deposit)


Capture

Cardholder account is charged


$$ deposited to Merchant Bank Acct
4

Putting it all together: Authorization

Merchant

Payment
Gateway

Cardholder
/ Customer

Processor

Merchant

Cardholder
Issuing Bank
Payment Gateway Processor

Putting it all together: Settlement


Acquiring
Bank

Merchant
Bank

Merchant

Payment
Gateway

Processor

Cardholder
Issuing Bank

Cardholder
/ Customer
6

Infrastructure: Components
IBM WebSphere Payment Manager
Wintel Servers
IBM HTTP Server (Apache)
IBM WebSphere Application Server
IBM DB2 Database
JAVA Programming Environment
7

Infrastructure: Components
Internet
(https)
eCommerce
Web App

Web Server
Wintel
Servers

Java/
J2EE

App Server
Payment
Gateway

Database

Payment Mgr
8

Payment Processing: Fraud


Card Present vs. Card Not Present
Authorization vs. Address
Verification (AVS)
Card Verification Value (CVV)

Fraud Protection Programs


9

Payment Processing:
Summary
Coordinating the flow of
secured transactions among
a complex network of
processors and financial
institutions

10

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