This document summarizes key concepts related to eCommerce payment processing infrastructure. It outlines the components involved including cardholders, merchants, issuing banks, acquiring banks, processors, and payment associations. It describes the authorization, capture, and settlement phases of a transaction. It also discusses fraud prevention techniques like address verification and CVV numbers. The infrastructure uses components like IBM WebSphere Payment Manager, web and application servers, databases, and Java programming to facilitate transactions between merchants and cardholders over the internet.

1. eCommerce Infrastructure ( Credit Card Payment Processing Concepts)

2. Payment Processing: Defined On-Line Payment Processing The buying and selling of products and services by businesses and consumers over the internet eCommerce Coordinating the flow of secured transactions among a complex network of processors and financial institutions

3. Payment Processing: Components AUTHORIZE... Cardholder Issuing Bank Cardholder / Customer Processor Credit Card Associations Settlement Acquiring Bank Payment Gateway Merchant Bank Merchant

4. Payment Processing: Phases Settlement (Batch Deposit) Verifies that the card is active Authorization Capture Verifies Cardholder has sufficient credit Cardholder’s Open-To-Buy is reduced Cardholder account is charged $$ deposited to Merchant Bank Acct

5. Putting it all together: Authorization Cardholder / Customer Payment Gateway Processor Cardholder Issuing Bank Processor Payment Gateway Merchant Merchant

6. Putting it all together: Settlement Cardholder / Customer Payment Gateway Cardholder Issuing Bank Processor Acquiring Bank Merchant Bank Merchant

7. Infrastructure: Components IBM WebSphere Payment Manager Wintel Servers IBM HTTP Server (Apache) IBM WebSphere Application Server IBM DB2 Database JAVA Programming Environment

8. Infrastructure: Components Internet (https) App Server Payment Mgr Web Server Database Wintel Servers Java/J2EE Payment Gateway eCommerce Web App

9. Payment Processing: Fraud Card Present vs. Card Not Present Authorization vs. Address Verification (AVS) Card Verification Value (CVV) Fraud Protection Programs

10. Payment Processing: Summary Coordinating the flow of secured transactions among a complex network of processors and financial institutions