Scribd
Upload
8 views

MODULE 4

The document outlines the roles of payment gateways and payment processors in facilitating secure online transactions. It details the steps involved in each process, from data encryption to transaction completion. Additionally, it discusses the integration of e-commerce and m-commerce, highlighting the benefits and challenges, and suggests strategies for ensuring mobile payment security and an optimized shopping experience.

Uploaded by

rahulkhinchi470
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
8 views

MODULE 4

The document outlines the roles of payment gateways and payment processors in facilitating secure online transactions. It details the steps involved in each process, from data encryption to transaction completion. Additionally, it discusses the integration of e-commerce and m-commerce, highlighting the benefits and challenges, and suggests strategies for ensuring mobile payment security and an optimized shopping experience.

Uploaded by

rahulkhinchi470
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 18

DATA ENCRYPTION

Payment Gateway &


Payment Processor

• In simple terms, the payment gateway


facilitates secure data transmission, while
the payment processor handles the
technical and financial aspects of the
transaction. Together, they ensure
seamless and secure electronic payments.
How Does a Payment Gateway
Function?
• When you click ‘Buy Now,’ the Payment Gateway steps into action with the
following steps:
1.Data Encryption: The payment gateway’s first task is to turn your
payment details (like card numbers and CVV) into an indecipherable code.
This keeps your info safe during the online journey.
2.Secure Connection: The payment gateway creates a secure connection
(usually with that familiar HTTPS) between your online store and your
bank.
3.Authorisation Request: Once your info reaches the Payment Gateway, it
sends an authorisation request to your issuing bank.
4.Bank Approval: Your bank reviews the request and checks your account.
If your info is validated, it sends an ‘approved’ signal back to the Payment
Gateway.
5.Transaction Complete: With the bank’s green light, your payment goes
through, and you receive that joyful ‘Transaction Successful’ message
How Does a Payment Processor
Function?
A payment processor is a system that handles online transactions. They serve as a
go-between for the merchant and the financial institutions concerned. Here’s the
lowdown on how payment processors work:
1.Transaction Initiation: The payment processor starts functioning when you have
filled your cart, and clicked the payment tab.
2.Merchant to Processor: The merchant (the online store) sends your payment
details, including the purchase amount and your card information, to the payment
processor.
3.Processor to Bank: Next, the payment processor communicates with your card-
issuing bank, enquiring whether you have sufficient funds for the purchase.
4.Bank Confirmation: Your bank reviews the request and checks your account. If
there is sufficient balance, it sends back an ‘approved’ signal.

5.Transaction Complete: The payment processor now tells the merchant, “Good
to go!” and the purchase is complete. You get your order confirmation.
Availabl
e &
Reliable
E-commerce and M-commerce
Integration
With the rapid evolution of mobile technology, businesses are increasingly
integrating their e-commerce platforms with mobile commerce (m-
commerce) strategies. Assume you are the chief technology officer (CTO) of
an online retail company that aims to expand its market reach by combining
both e-commerce and m-commerce solutions.
a. Evaluate the benefits and challenges that this integration might bring to
the business. Focus on aspects such as customer experience, scalability,
and operational efficiency. How does the mobile-first approach impact your
e-commerce platform's design and usability?
b. Design a strategy for your company to ensure seamless integration of
m-commerce with the existing e-commerce infrastructure. Discuss how you
would ensure mobile payment security, user authentication, and an
optimized shopping experience across different devices (smartphones,
tablets, and wearables).

You might also like