Anuja Pande et al, / (IJCSIT) International Journal of Computer Science and Information Technologies, Vol.

5 (2) , 2014, 2569-2573

E-payment Gateway Model

Anuja Pande , Prof. A.B. Deshmukh , Prof.M. D. Tambakhe

CSE Department, SGBAU AmarvatiUniversity

SIPNA COET Amravati MH

Abstract—The extraordinary growth of interconnected of operation of a broad range of e-payment systems

computer network & pervasive trends of using this network as available today in order to provide a comparative evaluation
new field for conducting Business process are stimulating the of their advantages and disadvantages.
demand for new payment methods. These new methods attain The analysis is presented in terms of the features of each
high level of security, speed, privacy, decentralization &
system and discusses the advantages and disadvantages to
internationalization. This seminar surveys the state of art in
payment technology & we proposed model for electronic the customer, the merchant, the e-payment service provider
payment gateway, On the basis of requirement of electronic and the financial institution. The Common E-payment
payment gateway. E-payment is now one of most central include the payment cards (credit or debit),ATM
research areas in E-commerce. E-payment system the (automated teller machines) etc. Use in E-business
automated process of exchanging monetary values among framework for additional secure transaction. Web shopping
parties in business transactions. In this paper a brief overview permits clients to sit in their homes and purchase
of electronic payment gateway is provided. This, addresses the merchandise from everywhere throughout the planet.
requirements for an electronic payment gateway from both Additionally permit Merchant to offer their items to
the customers and the merchants' point of view. Most of the
everywhere throughout the planet from home. The greater
population doesn’t trust on the local existing online payment
gateway because it is not very secure. Mostly people want to part of the populace will utilize on-line instalment as a part
adopt electronic payment system as it has lots of advantages. of not so distant future. A large portion of the Third planet
They need such a gateway that fulfil their all requirements nations lingered behind in making a great Internet
and provide security, privacy etc. On the basis of these construction modelling. There is need of a protected on-line
requirements and the local infrastructure, we propose an instalment passage in advancing nations. On the premise of
electronic payment gateway for local environment.. proposed structural engineering of e-instalment
arrangement of underdeveloped nations, this seminar report
Keywords— E-payment, Gateway gives a short review of existing electronic instalment
entryway. It likewise said the prerequisite for an electronic
I. INTRODUCTION instalment portal from client and dealer's perspective.
The Gateway is called as Trusted Third Party or Entry What's more on the foundation of these statistical data
point to any network. Used in E-commerce system for points another secure e-instalment entryway has been
more secure transaction. Online shopping allows customers composed and advanced. The instalment passage might
to sit in their homes and buy goods from all over the world. furnish secure transactions .On the foundation of proposed
Similarly allow Merchant to sell their products to all over structural engineering of epayment arrangement of
the world from home. Most of the population will use underdeveloped nations and the prerequisites identified
online payment in near future. Most of the Third world with any electronic instalment portal, we outline and
(Developing & undeveloped) countries lagged behind in advance a Secure, solid and proficient electronic instalment
making a good Internet architecture. There is need of a portal.
secure online payment gateway in developing countries. It Secure Pay furnishes an instalment door that expedites
also mentioned the requirement for an electronic payment electronic trade by empowering vendors to acknowledge
gateway from customer and merchant’s point of view. And Visas and electronic checks as techniques for instalment for
on the basis of these facts and figures a new secure e- merchandise and administrations sold on the web. The
payment gateway has been designed and developed. The entryway gesture as a scaffold between the vendor's site and
payment gateway would provide secure transactions. On the the fiscal organizations that process instalment transactions.
basis of proposed architecture of e-payment system of third Instalment information is gathered online from the
world countries and the requirements related to any customer and submitted to the passage for continuous
electronic payment gateway, we design and develop a commission. Not with standing, the instalment entryway is
Secure, reliable and efficient electronic payment gateway. focused on towards shippers that process Card-Not-Present
Electronic payment systems securely process such transactions. In a Card-Not-Present transaction, the shipper
payments and can be implemented by merchants and the customer are not in the same physical area and the
themselves on their own web servers or alternatively, they client as a rule brings in the instalment information or keys
can be provided to merchants by third party e-payment in the portions of the MasterCard on a site. All e-trade and
service providers. This seminar report describes the mode mail/telephone requests are Card-Not-Present transactions.

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 Anuja Pande et al, / (IJCSIT) International Journal of Computer Science and Information Technologies, Vol. 5 (2) , 2014, 2569-2573

II. PRELIMINARIES and the financial institutions that process payment

Online customer: A customer is an entity who will transactions. Payment data is collected online from the
buy products by making payments in timely manner. shopper and submitted to the gateway for real-time
Merchants: A merchant is a seller who will receive authorization. However, the payment gateway is targeted
payments made by customer. towards merchants that process Card-Not-Present
Banks: Two banks are involved transactions. In a Card-Not-Present We proposed a model
1. Client bank of electronic payment gateway on the basis of requirements
2. Merchant bank of an electronic payment gateway in developing countries
Client bank: Client bank holds client’s bank account and transaction, the merchant and the shopper are not in the
validate customer during account registration. Merchant same physical location and the customer usually calls in the
bank: Merchant bank holds merchant bank account. It is payment data or keys in the details of the credit card on a
responsible of management, fraud control etc. A merchant website. All e-commerce and mail/telephone orders are
account is a type of bank account that allows businesses to Card-Not-Present transactions.
accept payments by payment cards, typically debit or credit
cards. A merchant account is established under an
agreement between an acceptor and a merchant acquiring
bank for the settlement of payment card transactions.
Payment Gateway: A payment gateway is connected to all
customers, merchants and banks through Internet and
responsible for the speed and reliability and security of all
transactions that take place. A payment gateway is an e-
commerce service that authorizes payments for e-businesses
and online retailers. It is the equivalent of a physical POS
(point-of-sale) terminal located in most retail outlets. A
merchant account provider is typically a separate company
from the payment gateway. Some merchant account
providers have their own payment gateways but the
Fig. 1 Proposed Gateway Network
majority of companies use 3rd party payment gateways.
The gateway usually has 2 components:
a) The virtual terminal that can allow for a merchant to III. OBJECTIVES
securely login and key in credit card numbers , All Our aim is to Design & Implementation of
b) Have the website's shopping-cart connect to the Transaction Gateway Server for E-commerce payment
gateway via an API to allow for real time processing from system with technology with packet security. The Gateway
the merchant's website. is called as Trusted Third Party or Entry point to any
In existing system we use electronic gateway network, Use in E-commerce system for more secure
which is used for secure transactions between client and transaction. In USA about $3.5 trillion pours daily through
merchant. If new user wants to do transaction then he/she three major payment networks that dwarf the Bank of New
should register Himself/herself first through registration York's. The networks, run by banks and the government
form then browse merchant website using e-payment over high-speed phone lines, converge at just 10 secret data
gateway. Select item and encrypt payment request and send processing centres nationwide. They transmit everything
it to Server. Server receives encrypted message from sender, from direct-deposit pay checks to utility bill payments to
decrypt message, read, encrypt it using its own keys and huge corporate transfers in the USA and abroad. PayPal in
send it to Client bank. Client bank transfers the required the US, which was recently purchased by EBay, is one of
amount to the merchant bank through secure network. After the most frequently used e-payment gateway. In China
receiving the fund Merchant bank sends the payment. payment gateway is the single biggest unmet demand
There are five interfaces. because of lack of trusted and secure mechanism. Turkey’s
1. Customer Interface payment gateway is difficult to use insecure and highly
2. Server (e-payment Gateway) Interface expensive. In Nepal there are around 3 three banks that are
3. Client Bank Interface offering Internet Banking Services and majority of middle
4. Merchant Bank Interface class are out of such services.
5. Merchant Interface Most of the population will use online payment in near
Online Customer will connect to e-payment gateway future. Requirements of speedy processing of daily
through Internet. Gateway will connect to the Bank and transaction are becoming the basic need for every area
check whether its bank accounts are enough to buy the business. Therefore everybody is adapting computer
required product. Online customer can also visit Merchant’s technology for his or her business. Most of the Third world
website through Gateway. Secure Pay provides a payment countries lagged behind in making a good Internet
gateway that facilitates electronic commerce by enabling architecture. There is need of a secure online payment
merchants to accept credit cards and electronic checks as gateway in developing countries .On the basis of proposed
methods of payment for goods and services sold online. The architecture of e-payment system of third world countries
gateway acts as a bridge between the merchant’s website (Developing Countries). Most of the population doesn’t

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 Anuja Pande et al, / (IJCSIT) International Journal of Computer Science and Information Technologies, Vol. 5 (2) , 2014, 2569-2573

trust on the local existing online payment gateway because Else Cancel
it is not very secure. E-payment gateway today present is If select submit Display Authorization
not very secure. The proposed payment architecture is made If Credit card no. Text is equal to Credit card
by secure implementation of secure electronic transaction no. display This Customer is Authorized From Bank
method. Because of this now only authenticate customer b) Algorithm of Payment gateway: Server receives
can now perform transactions. We modify our gateway by payment order sent by clients, decrypt and encrypt that
making it more secure, low cost transaction, more feasible message and send it to Client bank. Client bank will send a
to user. If this system is to be implemented in developing payment deduction message to server and server will send it
countries then strong support of government of that country to Merchant Bank. Merchant bank will send an
is required as there is not much awareness of electronic acknowledgment message to Server and server will send it
transaction in developing countries. to merchant.
The electronic payment gateway is made enough secure Payment gateway:
that any authorized customer can easily trust on it & Start connection
confidently made payment over internet. The proposed If connected
architecture is made secure by the implementation of secure Receive payment message
electronic transaction methods. Because of this only Else display Not Connected
authentic customers can now buy products from merchant’s If receive payment message
site whose bank accounts is enough to buy the required {Decrypt message
product. At first it’s checked if the customer is authorized Split and send it to different textboxes
one or not then the whole transaction takes place. E- Add to database
payment gateway that fulfil their all requirements and Sent it to Client bank}
provide security, privacy etc. On the basis of these Else Cancel
requirements and the local infrastructure, we propose an If client bank is sending message
electronic payment gateway for local environment. {Receive it
Electronic Payment entrance is gift in our country however Send it to merchant bank}
it’s not terribly secure. The planned payment design was Else wait
conjointly lacking the protection issue. That planned design If merchant bank is sending message
is created secure by the implementation of secure electronic {Receive it
group action strategies. The electronic payment entrance is Send it to Merchant}
created secure enough that any licensed client will simply c) Algorithm of Client Bank: Client bank receives
trust on that and intrepidly or with confidence create payment message and verify client. Deduct amount from
payments over the net. If this method is to be enforced in client bank and send that amount to payment gateway.
developing countries then robust support of state of that Client Bank:
country is needed as there's not a lot of awareness of Start connection
electronic group action in developing countries. If connected
Receive payment message including client’s
VI. TECHNIQUES & ALGORITHM info
There are various algorithms on actions of client, If client’s info is present in database of bank
merchant Send message to server This customer is
a) Algorithm of Client: Client can browse merchant’s Authorized
website. After selection of items he can send payment order Else Send message This customer is not
to e-payment server after filling required fields e.g. Credit Authorized
card no., expiry date etc. If customer is authorized
Client: {Save payment request into database
Start and connect Deduct amount from Client bank Send that amount to
Start Customer browse merchant website Payment Gateway}
If select Category then sd) Algorithm of Merchant Bank: Merchant bank
Go to Item list of selected category verifies merchant, receives payment message from Client
If Select Item bank through payment server and add payment to
Then Show detail of selected item Merchant’s account.
If Want to buy selected item Merchant Bank:
Then select Add to order form Start connection
Else Go back to category If connected
If select add to order form Receive payment message including
Do Add To Order Sub Category Id merchant account no.
go to Order form and fill required fields like If merchant’s account is present in database
credit card No., expiry Date, and telephone no, of bank
Address {Receive payment Add payment to Merchant’s account}
Select Submit Else Send message Invalid account no.
Else continue shopping

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 Anuja Pande et al, / (IJCSIT) International Journal of Computer Science and Information Technologies, Vol. 5 (2) , 2014, 2569-2573

e) Algorithm of Merchant: Merchant makes and  Administrator can enable or disable Users if
updates website and receives acknowledgement messages required.
from payment gateway.
Merchant 2) A Gateway server to redirect transaction to Bank Servers:
Start connection  This gateway server will have a registry of banks.
If connected
{Make and update website  In registry banks can be registered.
If server is sending message  Only transaction of registered banks will be
Receive message and decrypt it} accepted.
Else retry to connect
 This server will have dedicated connection with
V. ANALYSIS OF PROBLEMS bank servers For fast processing of transactions.
Electronic Payment Gateway is present in our country
 It will be multithreaded so that multiple
but it’s not very secure. The existing payment architecture
transactions can be processed at a time.
was also lacking the security factor. Most people Doesn’t
trust on online shopping or online transaction because of  It will receive packets in encrypted form and will
security. Security is the main issues behind designing of redirect them to appropriate bank server according
Gateway. That’s why the proposed architecture is made to bank code.
secure by the implementation of secure electronic
3) Multiple Bank Servers to perform transactions:
transaction methods. Because of this now only authentic
customers can now buy products from merchant’s site  Each bank server will have its separate database.
whose bank accounts is enough to buy the required product.
At first it’s checked if the customer is authorized one or not  Each bank will have separate public & private
then the whole transaction takes place. The electronic keys.
payment gateway is made secure enough that any  The public key will be published so that it can be
authorized customer can easily trust on it and fearlessly or used by any application who wants to send
confidently make payments over the Internet. If this system transactions.
is to be implemented in developing countries then strong
support of government of that country is required as there is  Bank server will be always ready to accept
not much awareness of electronic transaction in developing transaction packets.
countries.
 When packet is received it will be decrypt packet
VI. WORKING MODULE by using private key of the Bank.

This system is for developing countries where a person  Transaction will be processed & result will be
doesn’t go for online shopping because of security issues. redirected to client.

1) A website to receive transaction for different companies: VII. EXPERIMENTAL RESULTS AND DISCUSSION
 Users can register on this site who wants to After the implementation E-payment Gateway we got the
perform transaction through internet banking result as follows
 There is connection establishment in client and
 Users have to login on this site. merchant bank and encrypted packet are
 Users can pay to multiple companies/organization send .the packets are encrypted with RSA
through this site. algorithm.

 Users can view previous all transactions/company

wise made by him.
 This site will accept transaction information
according to company setting. Such as for Tata-
sky recharge it will ask for Subscriber ID idea
recharge it will ask phone no.
 The accepted transaction will be encrypted by
using public key of appropriate bank. Then this
transaction will be send to gateway server.
 A site administrator will control complete site.
 Administrator will be able to register different
companies whose transaction will be accepted
through this site.
Fig.2.Result at Client Bank

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 After key Exchange and verification by gateway, REFERENCES

the transaction takes place and amount will [1] Prof.Gopi Krishna, Dr.R.Shiva Ram Prasad “PROPOSED MODEL
FOR REQUIREMENT OF E-PAYMENT GATEWAY” Vol.1
deposit in merchant bank. Issue 2 Dec 2011 152-168
[2] Ailya Izhar, Aihab Khan, Sikandar Hayat Khiyal, Wajeeh Javed,
shiraz Baig “DESIGNING AND IMPLEMENTATION OF
ELECTRONIC PAYMENT GATEWAY FOR DEVELOPING
COUNTRIES” vol. 26 No.2 April 2011
[3] Aboba, B., Arkko, J., Harrington, D. 2000. Introduction to
accounting management. RFC 2975 (October).
[4] Hakala, H., Mattila, L., Koskinen, J-P., Stura, M., Loughney, J.
2005. Diameter creditcontrol application. RFC 4006 (August).
[5] Wondwossen Tadesse, Tsegaye G/Medhin, Solomon Atnafu, Dawit
Bekele:“e-Payment in Ethiopia: Challenges and Opportunities”
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[6] Rosenberg, J., Schulzrinne, H., Camarillo,G., Johnston, A., Peterson,
J., Sparks, Handley, M., Schooler, E. 2002. SIP: Session Initiation
Protocol. RFC 3261 (June).
[7] Book “cryptography and network security: Principles and practice”
by William stalling 3rd edition, vol: 7, August 2004
[8] Jennings, C., Fischl, J., Tschofenig, H., Jun, G. 2006. Payment for
Fig.3.Result at Merchant Bank services in Session Initiation Protocol (SIP). draft-jenningssipping-
pay-05.txt (October).
 At the gateway Server we can see the connections [9] Süleyman Kondakci: “An Approach to a National E-Payment
Architecture” IT Consortium of Turkey,Division of Information
from both the banks after key exchange. Security, 2002
[10] Vivek S. rana, Chief IT/MTS Nepal Banks Limited: “Banking and e
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Exporters: Drivers and Barriers” Regional Business Forum on e-
Finance Bangkok, Thailand

Fig.3.Result at Gateway Server

VIII. CONCLUSIONS
The architecture is made secure by the implementation of
secure electronic transaction methods. At first it’s checked
if the customer is authorized one or not then the whole
transaction takes place. E-payment gateway that fulfil their
all requirements and provide security, privacy etc.
attributable to this currently solely authentic customers will
currently get merchandise from merchant’s web site whose
bank accounts is enough to shop for the desired product.
initially it’s checked if the client is allowed one or not then
the full group action takes place. The electronic payment
entrance is created secure enough that any licensed client
will simply trust on that and intrepidly or with confidence
create payments over the net.
The electronic payment gateway is made secure enough
that only authorised customer easily trust on it &
confidentially make a payment over internet.

ACKNOWLEDGMENT
We acknowledge our senior faculty who has
provided us their views in the selection of topic.

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