Online payments and

Security Gateways BySarujanJ/IT/13/02/071

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

EASYCOST-SAVINGCONVENIENT

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41. Customer makes purchase

Merchant

2. Secure connection through Internet to merchant

Merchant Bank

Consumer’s Credit Card Issuing Bank

5 .Monthly statement issued with debit for purchase

3 . Merchant software contacts clearing house

4 . Clearinghouse verifies account & balance with issuing bank

6 . Issuing bank credits merchant account

Secure Line

Clearing House

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.

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SERVICES

Bill PaymentCredit CardInsuranceCustomer servicesRecharging your phoneShopping

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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

Who can use internet banking ?

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working

Web server of Bank

Bank Account DetailsService That Gives

Internet

Bank Data Base

User

SSL connection

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Advantages

Cost less Transaction speed Efficiency Speed banking Vast coverage

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Issues in internet banking

Security Learning difficulties Lack of skilled personnel Technical breakdowns

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Online bank process

• Open the Prefer address

• User have an ID or User name

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Online bank process

• Password have to input

• Home screen is open when user Id an password matches

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Online bank process

Online banking facilities13

Online bank process

Online banking payments14

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.

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Any questions???

HOW IT WORKS IN BROWSER: HTTPS

www.gmail.com

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Any questions???

HOW IT WORKS IN BROWSER: HTTPS WITHOUT CERTIFICATION

https://www.varsityadmission.com/

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Any questions???

HOW IT WORKS IN BROWSER: HTTPS WITHOUT CERTIFICATION

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Video

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

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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)

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1

• It includes whether there are sufficient funds available, whether the details all matched correctly and whether the has been any fraudulent activity.

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• 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.

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Check out Continue

Before Confirm Order

Confirm

Before Check Out

After Check Out

The Payment Gateway Workflow should be inserted before the checkout.

After the confirm order page will the payment gateway workflow be activated

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Typical transaction process

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2

Payment Processing Service

1. Customer decides to make an online purchase and inputs credit card information

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Customer

Merchant

1 Processor

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Customer’s issuing bank

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2. Merchant’s website receives customer information and sends it to a payment processing service

3. Payment processing service routes information to processor4. 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 service7. Payment processing service sends results to merchant8. Merchant decides to accept or reject purchase

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Authorization

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Conti…..

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2

Payment Processing Service

Processor

1. Merchant informs the payment processing service to settle transactions2. Payment processing service sends transaction information to the processor3. Processor checks the information and forwards settled transaction information to the issuing

bank4. Issuing bank transfers funds to the processor5. Processor routes funds to the acquiring bank6. Acquiring bank credits merchant’s bank account7. Issuing bank includes merchant’s charge on customer’s credit card account

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4

Merchant’s acquiring bank

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Merchant

Customer

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Customer’s issuing bank

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Settlement

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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

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Any questions???

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Any questions???

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Any questions???

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