Now-a-days, online payments have become so common. We do online payments everyday. It might be for shopping, bill payments, mobile recharge and fee payments etc. Most of us doubt about its security. Will my details remain secure or not? In India, after demonetization, online transaction have registered massive growth. Especially, old people are not sure about its working. They fear about it. And Yeah there fear is genuine because they don't know how it works? In this article, I am going to tell about most common process of online payments. Most of the payment system work this way.
Online Payment Gateway
To start the transaction, we require a gateway. Through this gateway, we transact. The most common gateways are SecurePay, Yapstone etc.
How does Payment Processing System Works?
There are various steps involved in the whole process.
Step 1- Payment initiation by Customer
We have selected everything we want to shop. Now its time for checkout. As we start the process of payment, the first thing prompt to customer is mode of payment. In this, we select through which method we want to pay i.e. debit/credit card, net banking or online wallet. We select one option and fill card details or other details( depends on mode of payment).
Step 2- Gateway Provider to Payment Processor
Now payment gateway provider sends the transaction details to payment processor. This payment processor remains active 24*7*365, so that your transaction never interrupt.
Step 3- Payment Processor to Card networks to Card issuing bank
Payment details are validated. Details are send to card networks(Visa, MasterCard, RuPay etc.) and to Card issuing bank from card providers to validate. This all process is secured by 128 bit SSL encryption. In theory, this level of encryption is unbreakable. It requires physical access to servers even after that it took quite a time to break it. So your transaction is full proof.
Step 4- Authorization
Card Issuing bank authorize the transaction. If the amount of payment exceed transaction limit of customer, then bank denies it.
Step 5- Back to Payment Processor
If payment gets approved, the money is deducted from customer's account and forward the funds to Card networks. The Card networks then relay the transaction approved status back to the payment processor, who notifies Payment Gateway.
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Step 6- Payment Gateway to Customer
Payment Gateway lets the user know if the transaction is approved or denied through the online payment interface. If payment is denied, then gateway lets the user know that bank has denied it.
Step 7- Payment Gateway to Merchant
At this point, payment gateway provider transfer funds to Merchant. A receipt is then send to customer and payment receipt notification go to merchant.
This is how the whole online payment process is carried out. This is one of the most common method. Even other process are also quite same. There are some tips to make sure you are transacting securely.
Tips to Secure Online Payment
- Make sure the payment gateway website is https not http. 's' stands for SSL. This make sure website is secure.
- Do not share your bank information with anyone.
- Do not fear. Sometime in fear you even do wrong things.
At the end I want to say use online payment system. Use it wisely and smartly. Do not let people fool you. Now-a-days mobile payments are on rise. You can check them out here. If you like it, share it with your friends and relatives. If you are here first time, then follow my Facebook page. You can find link to Facebook page at top under Links section. Thanks for tuning in.
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