The principle of the payment system. Electronic payments - how it works
Thanks to the Internet, many new things have appeared in the world that greatly simplify life. Among them are various electronic payment systems that allow you to pay for services and transfer funds without leaving your home.
Elena Zaitseva is with you, a financial analyst at the HeatherBober magazine. I will tell you about the features and capabilities of electronic payment systems and analyze the most popular of them. If you want to select or change the service for remote financial transactions, you will find a lot of useful information in the article.
1. What is electronic payment systems
Electronic payment system (EPS) is an organization that provides settlements between users on the Internet. The participants in the process are individuals and commercial enterprises, banks and others. financial structures.
The EPS activity in Russia is regulated by the state. Main normative act- the law "On the national payment system".
Electronic payment systems allow:
- pay for utilities, mobile communications, television, etc .;
- purchase goods from online stores;
- withdraw funds to bank cards and accounts;
- exchange currency;
- transfer money to other participants in the system, for example, within the framework of a business.
The list is incomplete. The possibilities of virtual services are extensive, their functionality is constantly being improved and expanded.
For settlements, electronic money is used - virtual digital units issued by the system.
Features of digital cash:
- Available in electronic form only.
- Backed by real money.
- Guaranteed by the EPS that issued them (by the issuer).
- Stored on electronic media.
- They are recognized not only within the system, but also in settlements with external counterparties.
Virtual money is stored in electronic wallets - this is the name of the user's account in the selected system.
2. How they work
The principle of functioning of the EPS is similar to the traditional cashless transactions... Each user has a personal account for settlements with counterparties and between their wallets.
Simplified scheme of work is as follows:
- real money is transferred to the user's digital account;
- at the internal rate, the service exchanges for virtual currency;
- the account holder makes the necessary transaction (transfers funds to a private person, buys goods, etc.);
- the counterparty receives electronic currency;
- the system buys back its internal money, giving back the traditional ones.
After the exchange real money for digital in the amount of the receipt, the issuer has obligations to the user. The EPS guarantees that, upon the participant's request, the virtual currency will be exchanged for real money.
For the use of digital cash to be possible, the recipient organization must accept payment in virtual currency.
Operations often go through intermediaries.
Example:
The wallet owner makes a request for a transfer virtual money to a bank card. The operation takes place through an intermediary - an organization that accepts digital money, changes it to traditional money and transfers it to the specified details.
As a result, the client receives an amount in the required currency, for example, rubles or dollars.
Transactions in favor of companies that do not accept virtual money are carried out in a similar way. Sometimes the role of an intermediary is performed by the EPS itself.
3. How do electronic payment systems earn?
The main income comes from transaction fees. For example, Webmoney, one of the leaders in the digital cash market, retains 0.8% from each transaction. The tariff applies to both external transfers and actions between accounts of one user.
Additional earnings for EPS are received from:
- User attestation. There are wallets of different capabilities. To take an extended set of actions or translate more money, you need to pass certification - provide passport data, confirm your phone number, meet with a company representative for personal identification. Often a commission is charged for the service.
- Using terminals. You can replenish your wallet in different ways, payment terminal or partner ATM is one of them. A commission is charged for the operation. For example, the Yandex.Money service, depending on the selected terminal, deducts from 0% to 19% for one replenishment.
- Using your own maps. To simplify the deposit and withdrawal of money, EPS cards are issued, the maintenance and maintenance of which costs money. The fee is taken for the issue, cash withdrawal, SMS-informing and other operations.
The list is incomplete. In addition to the above, there are many other ways to earn money - payments for confirming transactions, commissions from partner organizations, the provision of intermediary services, etc.
4. Advantages and disadvantages
Electronic transactions are beneficial for both the EPS itself and its corporate partners. The issuer of the virtual currency receives a commission for the operation, and the points of sale are not spent on collection and storage of cash.
The user receives from such calculations:
- convenience - operations are carried out from home or another place with the presence of the Internet;
- reliability - subject to the safety rules for using the wallet, the service ensures the protection of information and the safety of funds;
- unlimited use - digital cash does not expire and does not expire;
- free support - no fee is charged for maintaining the wallet;
- high speed of payments - many transactions are carried out almost instantly, delays are possible with the involvement of intermediaries;
- transparency - all transactions are recorded, the history of electronic payments can be requested at any time.
But besides the advantages, the EPS also has disadvantages:
- the need to verify the identity - for the full use of the account, you will need to provide personal data and documents;
- restrictions on use - not all companies and trade organizations accept virtual money, although their list is growing;
- commissions - some mandatory fees are significant, which is especially noticeable for large amounts;
- difficulties with recovery - if you lose your password, it will be difficult to resume work due to increased security requirements, you will need to provide a lot of identity information.
Each user will find significant advantages and significant disadvantages for himself. For example, for me the commission for withdrawing funds from Webmoney to a card is too high. Because of this, I try to minimize the use of virtual money.
Watch the video to get an independent expert opinion on the features and prospects of digital cash:
5. What are the types of EPS
There are several types of electronic payment systems. They can be divided by participants in the transaction, by the amount of the transaction, by the due date, by currency, etc.
More often than others, the classification is based on the moment money is entered into the system. According to her, credit and debit types of EPS are distinguished.
Credit
For settlements between the participants of such services, credit cards are used with additional protection - message encryption and digital signature. To carry out the transaction, it is required to confirm the creditworthiness and compliance of the provided payment data with reality.
The main feature of such transactions is that first a contract is concluded, and then a payment or money transfer is made.
Credit EPS include First Virtual, Open Market, CyberCash, CheckFree and others.
Debit
Almost all international electronic systems payments are debit. The principle of their work is that transfers and payment operations are available to the user strictly after the account is replenished.
Some debit EPS do not use digital cash, but electronic checks.
The principle of their work is as follows:
- The sender of the payment issues a check and verifies it with a virtual signature.
- The document is transferred to the recipient through the arbitration system.
- The service checks the receipt.
- If no violations are found, then payment is accepted.
- Funds from the account of the user who issued the check are transferred to the recipient.
Digital checks use a limited number of systems - NetCash, NetChex, NetCheque and some others.
6. TOP-5 electronic payment systems in Russia
Not all world EPS are known or used in Russia. This is due to both the difficulties with the deposit and withdrawal of funds, as well as restrictions in the application.
Webmoney
It is considered the market leader. The development of the company began in 1998. During this time, more than 36 million people have joined Webmoney.
The account owner has the right to open an unlimited number of wallets in virtual counterparts of various currencies, including Bitcoin and gold. All accounts are combined into a kind of Keeper storage, each is assigned individual number WMID.
All transactions are instant and irrevocable. The commission for any transaction is 0.8%. To work, you must provide personal data and confirm them. There are several types of certificates. The higher the status of the account, the more options the user has.
Yandex money
Commercial non-banking organization, licensed by the Central Bank.
The user is prompted to open one of three possible wallets - anonymous, registered or identified. The status affects the maximum possible balance on an electronic account and transfer limits.
The NPO Yandex.Money has its own card for payments and cash withdrawals, tied to a wallet. The cost for 3 years is 200 rubles.
PayPal
International EPS, unites more than 200 million users. PayPal allows you to pay for online purchases and make transfers both domestically and internationally. You can open both personal and corporate accounts.
The main advantage of the service is that the transfer within the country for a private client will be free when funds are debited from the PayPal wallet. There is no commission for payment of services either.
If the transfer is made at the expense of the funds on the linked card, then the commission will be 3.4% + 10 rubles for each operation.
Qiwi
Offers simplified registration - to create a wallet, you just need to provide a mobile phone number. When opening an account, the Qiwi service will assign the client the Minimum status, which, after passing the certification, will be replaced with Basic or Professional.
Through the service, you can pay for services or transfer money. For ease of use, the client is prompted to issue free card associated with funds in the wallet.
Payeer
The service offers to transfer funds to more than 200 countries of the world in dozens of ways. At the time of this writing (March 2018), 157 online exchangers are declared on the Payeer website.
It is possible to issue a free card and withdraw funds to it without commission.
To understand which service is more profitable to use for withdrawing funds to bank accounts and cards, the data on commissions are summarized in the table:
№ | Service name | Commission for withdrawal to the card | Withdrawal fee |
1 | Webmoney | 2.5% + 40 rubles or 2% if the service finds a counter request from another participant | Depends on the proposals of other participants, on average 2% |
2 | Yandex money | 3% + 45 rubles | 3% + 45 rubles |
3 | PayPal | Free if you use funds from your wallet | |
4 | Qiwi | 2% + 50 rubles | 2% + 15 rubles |
5 | Payeer | 0% to 5% | 0% to 5% |
7. Conclusion
Now, knowing the basic information about EPS, you can easily choose the one that suits your needs.
The main thing is to ensure the safety of using the service. Use complex passwords and do not share your personal information with anyone. While working on the computer from which you log into your virtual account, do not visit dubious sites and do not follow suspicious links.
Question to readers:
Do you find the possibilities of virtual money useful for you personally?
We wish you to find a convenient, functional and easy-to-use electronic payment system. If you have any questions, ask them in the comments. We will be happy to answer them!
At the moment, progress has stepped far. For a long time, payments have been made not only in cash, but also by card, as well as online through electronic payment systems. The list of these services is regularly updated.
Nowadays, online investments and payments are developed that cannot do without electronic money... During its inception (early 90s), it became clear that traditional financial products were not suitable for electronic settlements. This is how the existing online payment systems appeared. The list and features of each of them are presented below.
Principle of operation
Such systems function in different ways. Basically, the founders of such services create their own electronic currency. They are called in an original way, since it is illegal to use "money" in the name. However, it is important to understand that beautiful terms indicate the absence of any financial guarantees and deposit insurance.
Everything is on the conscience of the founders who value their reputation. Basically where participants register and transactions take place. Each contributor has Personal Area and in which the amount of money in his account is recorded.
Some services even have their own exchange offices for issuing cash.
Advantages and disadvantages
Electronic payment systems have a considerable list of advantages.
- Instant execution of transactions (transfer of funds, payment for online purchases, conversion).
- Low commissions (due to high competition).
- Anonymity (a big plus for those who work semi-legally).
- Funds can be transferred to any bank account.
- Greater security (than cash).
- They are very convenient for receiving a salary for remote employees.
- Possibility to pay utility bills, telephone, Internet.
Payment systems also have a list of disadvantages.
- The main disadvantage is that the accounts are not completely legal.
- Not all purchases can be paid with electronic money.
- The service of converting funds into cash is expensive.
- Due to the lack of control from the law, you can often encounter scammers (on free hosting, such sites are created in 5 minutes, so the service should be checked for authenticity).
To check the EPS for authenticity, it is enough to find out whether large financial structures (Sberbank of Russia, Alfa-Bank) cooperate with this service.
List of payment systems in Russia
The main services operating on the territory of the Russian Federation:
- Yandex. Money is one of the most popular in Russia. Many payments can be made using it. In particular, payment for paid games and other Internet services, utilities, phone, shopping in online stores. Also, with its help, money transfers are carried out.
- Arsenal Pay is a payment system of the country's Primorsky Territory. This is another reliable service for transferring funds and making payments. The service does not charge hidden commissions.
- MIR (NSPK) is a Russian payment system founded by the Central Bank. The system guarantees safety and absence of interruptions in work during various financial transactions in Russia.
There are also other Russian and international payment systems, the list of which is presented below:
- WebMoney is the most popular international service. A separate guarantor works with different currencies. Users have a unique WMID number for using their personal account.
- PayPal is another global system. Its peculiarity: all calculations are made in real money.
- QIWI (QIWI) is the world leader among instant payment systems.
The future of payment systems
Over the next five years, the retail banking business in Russia will change dramatically - payment technologies are rapidly developing. Serious changes have already taken place: electronic databases are being introduced, processing systems are being improved, legislation and the environment are changing. Internet banking and mobile banking will gradually oust ordinary tellers from the banking business.
What is a payment system
A payment system is understood as a set of rules and tools that allow settlements between the buyer of a product or service and a trade or service organization. A payment includes a set of transactions for authorization, mutual settlements and transfer of payments, as well as other financial and non-financial information. Typically, the payment process involves:
- Client, buyer
- Store, seller of goods or services
- Bank as a guarantor of payment legitimacy
- A processing company as a technological intermediary between all parties to the transaction.
There are several main types of cashless payments
- With a bank card and personal code indicated on the card
- Using an electronic wallet (a separate application of the payment system)
- Using an electronic invoice with authorization via an Internet browser
- Using a mobile phone from the client's account with a mobile operator
- Using mobile banking (when the bank account is linked to the client's mobile phone)
Payment systems user interface
Are you wondering what a client's personal account looks like in various payment systems?
Internet banking, mobile bank
Using non-cash funds
Cash payments
To date, only one type of remote is known. cash payment goods or services - through payment terminals of independent payment systems (for example, QIWI) or through similar bank terminals. Payment is accepted through the automatic bill acceptor of the terminal.
Transfer of electronic funds between payment systems
Learn more about security in payment systems
Payment systems protect payment transactions to prevent cybercriminals from making payments. First, encrypted protocols are used. Secondly, each payment is often protected by a confirmation using a code sent by SMS to the phone number registered by the client. Third, if it comes about online payments using plastic cards or electronic wallets, transactions in the payment system can be additionally protected by binding to a specific computer or IP address, as well as time-limited authorization methods - this helps to avoid another user logging into the system on public computers.
Each payment system tries to certify the participants in the transaction - the seller and the buyer. In order to receive a certificate in an electronic payment system, natural person it is required to provide personal data (for example, a passport). Organizations provide legal documents proving registration and availability of appropriate licenses for their activities.
The development of electronic commerce has contributed to the emergence of electronic payment systems that allow you to pay for purchases on the Internet from home. The common name "payment systems" unites different types online payments. The most common credit systems are those that allow ordinary credit cards to be used online.
Credit card technology serving payments on plastic cards is represented in Russia by such systems as Assist and CyberPlat (Fig. 5.2). The scheme of operation of such a system is as follows: the client gets the opportunity to make purchases in online stores and pay for them in real time either from his bank account or using his bank card, receive statements and results of payments. The client can issue directly via the Internet payment order allowing to execute bank transfer to any account in any Russian bank... Thus, you can transfer funds from the system to your account in any other bank or pay for standard services, for example, operators of cellular communication or Internet providers.
Another niche in the electronic payments market is occupied by systems that use electronic money. As noted in subsection 5.3, the essence of such money is the introduction of a digital equivalent of real money, with the help of which settlements are carried out. In many cases, this technology is more convenient, especially when paying for small purchases that make up a large part of the market for goods. In addition, such systems are attractive because they are anonymous and do not require third-party confirmation.
Digital cash technology is represented in Russia by such systems as PayCash and WebMoney. The scheme of operation of these systems looks like this: the client opens " online wallet" in " electronic bank”(The account is opened via the Internet“ from home ”) and transfers money to this account (by depositing cash at the bank's cash desk, bank or postal order, using a credit card, and, finally, another client can pay him within the system). After that, he becomes a client. To be able to pay within the system, the client creates one or several payment books on his computer. The client then translates
a certain amount of money from your account to one of the books, that is, to your computer. Now the client is ready to pay online, and anonymously, with the money that is on his payment books. Each payment is authorized by the bank.
Fig. 5.2 CyberPlat payment system page
It is convenient to pay with the help of an "electronic wallet" in online stores that accept electronic money. In addition, if the client paid "with the protection of a trade transaction", the seller receives the money only after the delivery of the goods, that is, the buyer's protection is algorithmically incorporated in the system.
Let's consider some payment systems.
« CyberPlat " Is a universal multi-bank integrated Internet payment system that provides a full range of financial services - from micropayments to interbank settlements.
The main properties of the CyberPlat® system are:
1) integration - the system combines various tools for doing business on the Internet:
- "CyberPlat" - a subsystem for servicing transactions of the "business" class for businesses with elements of electronic document management for clients registered with "CyberPlat";
- "CyberPlat" - a subsystem for servicing payments by plastic cards of international and Russian payment systems, focused on "business" services for the consumer and does not require registration of buyers in the CyberPlat system;
Internet banking - managing an account in a bank participating in the system via the Internet (for more details, see subsection 5.6);
2) multibanking - the CyberPlat® system allows an unlimited number of banks to participate in it, is open for interaction with any other payment systems and, unlike many of them, provides support for many processing centers. Processing center - is it a legal entity or its structural subdivision providing information and technological interaction between settlement participants. The collection, processing and distribution of information on transactions with bank cards to participants in settlements is called processing ;
3) versatility - the system allows you to use various payment instruments: plastic cards international and payment systems, including Visa, Europay, Diners Club, JCB, American Express, Union Card, uniform cards e-port, as well as payments directly from bank accounts of payers in banks - members of the system to any bank account, including external.
CyberPlat® guarantees complete confidentiality of transactions and inaccessibility of payment details for outsiders.
« Assist " is a system that allows real-time authorization and processing of payments made with credit cards from any computer connected to the Internet. Being a multi-bank system for making payments for plastic and virtual cards via the Internet, "Assist" is the leader in Russian market and conducts over 80% of all Internet transactions. No additional software there is no need to install other than a browser. DynaSite is used as server software. All settlements are carried out through the CyberPlat back office. To ensure the security of the transmitted data from the buyer, Assist uses the SSL (Secure Socket Layer) protocol. The system is not anonymous, but confidential information about credit card the client (details) is not transferred to the online store.
"Rapida" provides individuals, banks, trade and service enterprises with the possibility of a remote payment service (remote
management of bank accounts, universal payment cards and money transfers). The technologies and principles of the system are based on the use of remote funds management in real time, without opening additional bank accounts. Pay for goods or services (mobile, intercity or international communication, utility bills and insurance bills, Internet access, the use of paid information materials, purchases in online stores, etc.) can be used around the clock by landline or mobile phone, as well as via the Internet. You can use the services of the system using a universal payment card Rapida. It combines the ability to pay for Internet access, long-distance calls, purchases in online stores.
« WebMoney Transfer " - universal outside banking system allowing instant settlements on the Internet. The system is open for free use by everyone and has no territorial restrictions. The means of calculation in the system are WebMoney title units, the stability of the exchange rate and the liquidity of which are provided by the guarantors. Currently, the guarantors of WebMoney are:
· In Russia - an autonomous non-profit organization "VM-Center" (implements circulation in the "WebMoney Transfer" system of type R);
In the USA - IMTB Inc. (implements circulation in the WebMoney type Z).
One WebMoney (WM) type R is equivalent to the cost of one Russian ruble, 1 WM type Z - one US dollar, 1 WM type E - one euro.
All WebMoney available in the system are stored on electronic accounts (wallets) of its participants (WM type R - equivalent to RUR - on R-purses, WM type Z - equivalent to USD - on Z-purses). At the same time, financial settlements between participants are carried out only using the same type of wallets. Those stored in WebMoney wallets can at any time be withdrawn from the system with conversion into the currency of the corresponding type by non-cash payment to the bank account specified by their owner.
You can get WM:
From guarantors by wire transfer from any bank, including Sberbank of Russia, as well as by postal transfer to the guarantor's current account, indicating the number of the replenished wallet ( cash will be automatically converted to WM and credited to the wallet specified during the transfer);
· Through a prepaid WM-card (replenishment of Z-purses);
· From any of the participants in the system in exchange for goods, services, or in exchange for cash.
With the help of "WebMoney Transfer" you can make purchases in electronic stores, create your own stores that implement real-time sales on the Internet, as well as make settlements with other members of the system. "WebMoney Transfer" has a high degree of protection: all information transmitted over the Internet is encrypted using an algorithm equivalent to RSA (see Subsection 5.8), with a key length of 1040 bits.
« PayCash ". Members of this payment system are the bank (the company that operates the system) and customers. Clients can be physical and legal entities, as well as robots - autonomously functioning computer programs that play the role of shops, casinos, dealing centers, bookmakers, etc., acting on behalf of both. All clients are equal for the bank. In particular, in order to be able to accept payments, the customer does not need any special “shop” status. The client conducts all his transactions within the PayCash system using the special software “Wallet”. System participants interact with each other by sending messages over the Internet.
A prospective client using the "Wallet" opens a bank account and transfers money to this account. After that, he becomes a client. To be able to pay within the PayCash system, the client creates one or more payment books on his computer using the Wallet. Then, again, using the "Wallet" transfers a certain amount of money from his account to one of the books, that is, to his computer. At the same time, the bank cannot determine to which book the money is transferred. In addition, the bank does not know who owns specific payment books. Now the client is ready to pay on the Internet, and anonymously, with the money that is on his payment books. Each payment is authorized by the bank.
The message chain during the payment looks like this:
Seller - Buyer - Seller - Bank - Seller - Buyer.
In the first step, the seller asks the buyer for money, and the signed transaction contract is included in the request. In the second step, the buyer sends the payment data to the seller. Next, the merchant sends the payment data to the bank for authorization. Bank
conducts the necessary checks and sends the seller a receipt, as well as a receipt for the buyer. The seller informs the buyer of his decision and sends him the data encrypted by the bank in the name of the buyer.
It should be borne in mind that in the PayCash system the client receives electronic cash at his disposal, which, like ordinary paper money, can be lost. For example, if a client's computer “burns down” or is stolen, the client will lose all the money that he transferred to his computer and did not have time to spend. However, if the prudent client has backed up the Wallet settings for the last money transfer from the account to the computer, then he can restore his money.
Thus, PayCash is a system of anonymous electronic money, and not just a client-bank system. This is also expressed in the fact that the bank cannot, for example, at the request of the court, prevent the client from spending electronic money that he managed to transfer to his computer, otherwise than by stopping all payments in the system. If the client needs to withdraw his money outside the PayCash system, he gives the command to transfer part or all of the funds from his account in the system bank to an account in some non-virtual bank, where he or his representative can physically receive them. When sent over a network, all data is encrypted with public keys no shorter than 1024 bits and symmetric keys no shorter than 128 bits, so it is computationally impossible to intercept encrypted messages in the foreseeable future. When implementing the system, precautions are also provided to protect the client from attempts to steal information directly from his computer.
"Yandex money" . This system(Figure 5.3) is not just a combination of reliable PayCash technology and Yandex's multi-million audience, but also a partnership with hundreds of members. Among the partners are banks, Internet providers, Internet shops, post office, utilities, and other payment systems. affiliate program open to everyone.
Fig. 5.3 Scheme of the Yandex.Money system
To become a member of the system, you do not need to have a bank account or credit card, it is enough to register in the Yandex.Money payment system (Fig. 5.3). In this case, an account associated with your "Wallet" will be automatically opened in the payment system. To this account, you credit your money in any way convenient for you, after which you can make payments, you can yourself receive money to your "Wallet" from someone. You can always exchange electronic money from a virtual account for real money.
Work in the Yandex.Money system is as follows:
1) install the "Internet" program on your computer. Wallet and put money into your account in the processing center of the Yandex.Money system. Then you replenish your "Wallet" with a certain amount of money - transfer it from the account in the processing center. Thus, you have electronic cash in your "Wallet";
2) choose a product or service in an electronic store and send the order (Fig. 5.4) - press the "buy" button. Your "Wallet" should be running at this moment. The "wallet" of the seller (store) sends your "Wallet" a payment request containing the text of the contract (sale and purchase agreement). The contract is signed with the electronic digital signature of the seller;
Fig. 5.5 Sales and Purchase Agreement
3) your "Wallet" presents you with the text of the agreement. If you agree, and you have enough money in your account, then your "Wallet" sends electronic money to the "Wallet" of the seller and signed by your electronic signature agreement (Fig.5.5);
4) the seller's "wallet" presents the electronic money received from you to the Processing Center to confirm their authenticity (Fig. 5.6);
Fig. 5.6 Transferring money from the buyer's wallet to the seller's wallet
Fig. 5.7 Reply to the seller about the execution of the operation
5) in case of a positive result of the check, the Processing Center of the Yandex.Money system credits the corresponding amount of money to the seller's account. A message about this is sent to the seller's "Wallet" along with a "receipt" for you (Fig. 5.7);
6) having received a response from the bank, the seller's "Wallet" sends a message about the successful transfer of money to his account, and sends a "receipt" to your "Wallet" (Fig. 5.8).
Fig. 5.8 Transfer of the receipt to the wallet
7) when making a purchase using the Yandex.Money system, the purchase and sale agreement between the parties to the transaction is transferred along with the electronic money. During settlements, this agreement is automatically signed with electronic digital signatures of wallet owners who transfer and receive money in accordance with this agreement. Thus, the buyer is left with an electronic document confirming the seller's commodity obligations, with his electronic signature.
Doing business on the Internet has already ceased to be something innovative and passed into the category of "self-evident" concepts. Almost every store has its own store or catalog on the web.
However, how easy it is to find and order a product online, it is just as difficult to pay for this product online, in this case I am talking specifically about Belarus. In the best case, a courier with a terminal will come to you to make a payment by card. One of the reasons for this phenomenon lies in the low culture of the population in the field of electronic payments. It comes from a banal misunderstanding of how it works.
In this article, I want to talk about the key points of making an online payment.
A bit of theory, diagrams and important points
First, a little theory.
1. To make his payment online, the client needs to transfer his hard-earned money to electronic view... To do this, you need to go to the bank and open an account there. After that, the dear cash turns into a set of bytes on one of the bank's servers. In reality, there is no need to go anywhere, because the banking system in the country is quite developed. According to statistics, the population has more than 10 million bank cards, so we can safely say that every person in our country has a bank (debit, credit, salary) card, which means that there is also "electronic" money. The bank that issues the payer's card and ensures the safety of funds on it is called the Issuer.
2. For clients of different banks to be able to make payments without any problems and use any terminal or ATM, and not just the services of their “own” bank, a common standard of interaction between banks and a certain regulator is needed to ensure this interaction. This role is played by processing centers. These centers are international payment systems Visa, MasterCard. Within our country there is also BelCard and the Banking Processing Center. Every bank that issues you a card with a logo Visa MasterCard BelKart is a member of this system.
3. In order to accept card payments, you again need to go to the bank and open a special account "Merchant Account" or Merchant Account there. The bank where you can open such accounts is called Acquirer.
Let's see how all this already works on the example of the usual card payment in a regular store.
1. You are told the amount - you hold out your card.
2. Your card is passed through a special device (terminal) that reads data from the card.
It is important to understand that only the card number and information about the owner are read.
PIN code or CVC code are security elements - their data is not protected in a magnetic stripe or chip. Therefore, they cannot be read so easily. You may be asked to confirm the check by signing or entering your PIN. But you can't just call or transfer this data. It is important to know and remember this in order to avoid possible fraud with your card.
3. The terminal is programmed for a specific request to the bank Acquirer, which the device issued to the store. This request contains a pointer to the merchant's / store's account number in this bank and card data.
4. Having received this request, the bank sends a request with card data to the processing center. The processing center determines the card issuer and sends a request to this bank. The Issuer Bank, in turn, checks whether the requested funds are on the card account and, if so, freezes them and gives a positive response to the operation.
5. The Acquirer Bank gives a positive answer to the terminal - and your payment was successfully completed.
An important point in this scheme that many people miss. The issuing bank exactly freezes the money in the client's account, and does not instant transfer from the client's account to the seller's account. Depending on the location and rules of the banks, the final transfer of funds can take up to several days. Often, many traders have a misunderstanding at this very moment. Payment approved - the item has been returned, but there is no funds in the account. It's okay - they will be within the next few days.
How does a payment on the Internet fundamentally differ from the scheme described above? Actually, not many. The Acquiring Bank and the Issuer Bank, as well as the scheme of their interaction, remain unchanged. The only difference is how the request gets to the bank Acquirer. To implement online payment, the Acquirer Bank must open access to its data center. In order to protect itself, the bank opens this access either to its division responsible for online payments, or to certified processing companies.
These companies fulfill 2 roles:
- They ensure that the payment is checked for fraud before entering the bank's network.
- They provide a convenient request form for marketplaces. As a rule, you need to make a simple POST request for the resource of the processing company, which will then turn it into the required request for the bank (In essence, it will represent the terminal). It is also convenient if the merchant changes the Acquirer Bank - the trading platform does not need to change the integration.
So now let's see how it works in the case of online payment.
- You go to the shopping cart on a marketplace.
- You are shown the order amount and a form for entering your payment and personal data. Looks like the picture for the article.
- After filling in all the information, you click the "Pay" button.
- The site collects your data and generates a request from the processing company.
- The processing company checks it and sends it to the Acquirer Bank.
- Further, the scheme is similar to the previous one: Bank Acquirer - Processing Network - Bank Issuer
- The processing company gives the result to the site.
There are even more simple schemes for payment: the marketplace simply redirects the client to the Payment page of the Processing Company. Next, the client will be greeted with a convenient data entry form, shown a beautiful spinner while the payment is being processed, and just as gently shown the payment result and returned to the site from which the client came.
Hence the main conclusion: if you want to start accepting payments on your trading platform, you need to contact the Bank, which opens "Merchant Accounts", or to a processing company that will study your business and select a suitable Acquirer Bank for you, as well as help with integration your site.
If you are interested in this article, I can tell you about various types of integration of your site in the following articles, touch on the main points of security, schemes for making and canceling payments.