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

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

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AUTHORIZATION
Payment
Processing
Service

3
2 7
6
Merchant 4 5
Customer’s
issuing bank
8

Customer 1 Processor

1. Customer decides to make an online purchase and inputs credit card information
2. Merchant’s website receives customer information and sends it to a payment processing service
3. 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 service
7. Payment processing service sends results to merchant
8. Merchant decides to accept or reject purchase

16
SETTLEMENT
Payment
Processing
Service

1 7
3 4
Customer’s
Merchant issuing bank
5
Processor Merchant’s
6 acquiring bank
Customer

1. Merchant informs the payment processing service to settle transactions

2. Payment processing service sends transaction information to the processor
3. Processor checks the information and forwards settled transaction information to the issuing
bank
4. Issuing bank transfers funds to the processor
5. Processor routes funds to the acquiring bank
6. Acquiring bank credits merchant’s bank account
7. Issuing bank includes merchant’s charge on customer’s credit card account
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WHY PAYPAL?
 Grow sales

 Get new customers

 Integrate easily
PROTECT YOUR BUSINESS AGAINST FRAUD
• Ensure each transaction you accept and process is
valid, and be careful in reviewing suspicious
Transaction transactions because some may be valid.
Level

• Make sure only authorized users have access to your

payment gateway account, and be alert for suspicious
Account account access patterns.
Level

• Ensure your perimeter is defended against

Network unauthorized access.
Level

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 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