Secure and Successful E-commerce Transactions
Behind every card transaction is a complex system with numerous participants, each playing a distinct role. You probably have a general idea of the part that the customer sees and experiences during online payments. In this blog, I’ll try to illustrate what happens in the background.
Issuing bank (issuer)
The issuing bank provides the payment card, enabling the customer to make payments and the merchant to receive payments. Transactions are the reason why cards are issued, and thus, the issuance of a card initiates the narrative of card transactions across various channels, including the internet.
Internet Payment Gateway
As a provider of online payment services (functioning as an Internet Payment Gateway), CorvusPay processes transactions, transmitting them from the merchant to the bank when initiated and back, when a response is generated. In this phase of the process, it ensures that data is swiftly and securely transmitted to all participants.
Acquiring bank (acquirer)
After the Internet Payment Gateway transfers the transaction, the acquiring bank accepts it. If it’s a transaction involving a card issued by the acquiring bank, it checks the client’s account balance and responds with an approval or denial.
Card organization
If the acquiring bank did not issue the card, the transaction is forwarded to one of the card networks, depending on the card brand (American Express, Diners, Mastercard, Visa, or another). The card network then routes the transaction to the bank that issued the card.
In collaboration with the issuing bank, verification of the cardholder is conducted, where the customer may be asked to confirm their identity through 3D Secure authentication.
Identity verification
Gateway conveys the response to both the customer and the merchant, marking the moment when the transaction is completed. If the transaction is approved, the merchant can proceed with further activities toward the customer (packaging, delivery), effectively concluding the sales process.
Banks will subsequently reconcile accounts among themselves, and during this process, all fees will be calculated.
CorvusPay, acting as a reliable and secure Internet Payment Gateway, plays a crucial role in this process, as our technology ensures the secure transmission of data, safeguarding the interests of all participants.
The flow of a card transaction in a web shop is intricate but necessary, enabling customers to make online payments and merchants to sell their products and services. CorvusPay is an essential part of this process, ensuring secure and efficient transactions, thereby facilitating the growth of business for web shops and contributing to the overall advancement of eCommerce.
I hope this blog has been clear and helpful for you. I’m flying on, talk to you soon.
Edgar