This document provides an overview of online payment gateways. It discusses how payment gateways work by transmitting transaction data between merchants, customers, and financial institutions to authorize payments. It also describes typical transaction processes, security measures used, and examples of major payment gateway services like PayPal. Common functions of payment gateways are processing credit card payments, protecting sensitive data, and facilitating real-time authorizations.

1. PRESENTATION
ON
ONLINE PAYMENT
GATEWAY SYSTEM

2. 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.

3. • 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.

4.  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.

6. 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.

7. TYPICAL TRANSACTION PROCESS

8. CONTI…..

9. 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.

12.  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.

13.  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.

14. PAYPALWORKING

15. PAYMENT NETWORK PROVIDES PROCESSES AND SERVICES
15
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

16. AUTHORIZATION
Payment
Processing
Service
2
7
6
5
Customer
Merchant
8
1 Processor
3
Customer’s
issuing bank
4
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
16
8. Merchant decides to accept or reject purchase

17. 2
SETTLEMENT
Payment
Processing
Service
Processor
5
6
4
Customer’s
issuing bank
Merchant’s
acquiring bank
1
Merchant
Customer
3
7
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
17
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

18. WHY PAYPAL?
Grow sales
Get new customers
 Integrate easily

19. PROTECT YOUR BUSINESS AGAINST FRAUD
19
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.

21.  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.

22.  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.

24. 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

25. THANK
YOU