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Credit Card Payment Processing Concepts

Payment processing involves coordinating secure transactions between merchants, customers, payment gateways, processors, and financial institutions. It has two main phases - authorization which verifies the card and available funds, and settlement where the customer is charged and funds are deposited to the merchant. The infrastructure includes components like servers, databases, web and application servers, and payment management software to facilitate the flow of information and funds between all the entities.

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Gaurav Goyal
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31 views

Credit Card Payment Processing Concepts

Payment processing involves coordinating secure transactions between merchants, customers, payment gateways, processors, and financial institutions. It has two main phases - authorization which verifies the card and available funds, and settlement where the customer is charged and funds are deposited to the merchant. The infrastructure includes components like servers, databases, web and application servers, and payment management software to facilitate the flow of information and funds between all the entities.

Uploaded by

Gaurav Goyal
Copyright
© Attribution Non-Commercial (BY-NC)
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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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

Payment Processing: Components


Cardholder / Customer Processor Cardholder Issuing Bank

Payment Gateway

Settlement

Acquiring Bank

Credit Card Associations Merchant

Merchant Bank

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

Putting it all together: Authorization


Merchant
Cardholder / Customer
Payment Gateway

Processor

Merchant
Payment Gateway Processor

Cardholder Issuing Bank

Putting it all together: Settlement


Merchant Bank
Acquiring Bank

Merchant

Payment Gateway

Processor

Cardholder Issuing Bank

Cardholder / Customer

Payment Processing: Summary


Coordinating

the flow of secured transactions among a complex network of processors and financial institutions

Infrastructure: Components
IBM WebSphere Payment Manager

Wintel Servers IBM HTTP Server (Apache) IBM WebSphere Application Server IBM DB2 Database JAVA Programming Environment

Infrastructure:
Internet (https)
eCommerce Web App

Components

Web Server
Wintel Servers Java/ J2EE

App Server
Payment Gateway

Database

Payment Mgr

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