PRESENTATION ON

ONLINE PAYMENT GATEWAY SYSTEM

INTRODUCTION

A payment gateway is a software program

integrated to a merchant's website to transmit

transaction data to:

Credit Card

Net Banking

Cash Card

Mobile Payment

acquirer for authorization and settlement.

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

•In order to check these details, the Payment Gateway will communicate with the Card Schemes and Issuing Banks.

•And then report back with its findings and relevant transaction response.

Merchants gain the ability to perform real-

time Credit Card authorizations from a web

site over the Internet.

Customers can pay for purchases across the

Internet through Credit Cards within

seconds, after the gateway obtains

authorization from the Credit Card

institutions.

EXAMPLE

Payment gateway protect credit card details

encrypting sensitive information such as credit

card number.

To insure that information passes securely

between the customer and the merchant and

also between the merchant and the payment

process.

TYPICAL TRANSACTION PROCESS

CONTI…..

SECURITY

Customer is usually required to enter personal

details, the entire communication of 'Submit

Order' page is often carried out through

HTTPS protocol.

To validate the request of the payment page

result, sometimes the IP of the requesting

server has to be verified.

PayPal is an online payment service founded in

1998 and owned by eBay.

It facilitates the transfer of money from one

party to another over the internet. 

Payments can be made for goods, services, and

online donations can be made as well. 

PayPal processes millions of dollars every

day, and recently exceeded $6 million per

day in mobile transactions alone.

PayPal is a fast, simple, and secure way to

make a payment online. 

PAYPAL WORKING

PAYMENT NETWORK PROVIDES PROCESSES AND SERVICES

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Processes

► Authorization – the process of verifying a customer’s credit card

► Settlement – the process of collecting funds from the customer’s account

Services

► Payment Processing Service – connects merchants, customers, and banks through secure online transactions.

► Gateway – the secure pipe between the banks and the processor

2

Payment Processing Service

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

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5

Customer

Merchant

1 Processor

3

Customer’s issuing bank

4

2. Merchant’s website receives customer information and sends it to a payment processing service3. Payment processing service routes information to processor

4. 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 merchant

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8. Merchant decides to accept or reject purchase

8

AUTHORIZATION

2

Payment Processing Service

Processor

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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

6

4

Merchant’s acquiring bank

5

Merchant

Customer

1

Customer’s issuing bank

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SETTLEMENT

WHY PAYPAL? Grow sales

Get new customers

Integrate easily

PROTECT YOUR BUSINESS AGAINST FRAUD

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Transaction Level

• Ensure each transaction you accept and process is valid, and be careful in reviewing suspicious transactions because some may be valid.

Account Level

• Make sure only authorized users have access to your payment gateway account, and be alert for suspicious account access patterns.

Network Level

• Ensure your perimeter is defended against unauthorized access.

Founded in 2001

It is the largest Payment Gateway in India

today.

Currently powers more than 85% of the e-

commerce merchants in the country.

It provides complete, simple and secure online

payment gateway services.

It is a Commerce Service Provider, authorized as

a Master Merchant, by Indian financial

institutions, to appoint Sub Merchants, to accept

and validate Internet payments via Credit Card.

This enables the websites to transact and accept

payments online and in real time.

 STEPS TO CREATE MERCHANT ID WITH CCAVENUE

Step 1: Initial Site Setup

Step 2: Registration and Document

Submission

Step 3: CCAvenue issues a Merchant ID

Step 4: Mapping Merchant ID to URL

Step 5:  Integration

THANK YOU