By: Abinaya in Java Tutorials on 2007-09-14
e-Payments are secure real time payments that
transfer funds (via the Internet) between a consumer and the merchant's financial institutions.
e-Payments require secure communication between all components of the e-Payment process.
The Components of an e-Payment Solution
An end-to-end e-Payment solution is made up of the following components:
? The Merchant application is a business application/website on the merchant's system that uses Payment Client to process payments.
? The Integration module is a communication bridge between the merchant application and Payment Client.
? Payment Client provides secure communication between the merchant application and the Payment Server. Payment Client can be integrated with a number of systems including merchant applications, Interactive Voice Response (IVR) systems, and integrated ERPs
? Payment Server processes merchant Digital Orders.
? The Payment Provider enables the merchant to accept payments online.
In their most simple form, e-Payments are represented in the following diagram:
How e-Payments Transfer Funds
e-Payments transfer funds via the following
1 The cardholder purchases goods/services from the merchant (for example, in person, via the
Internet, over the phone).
2 The merchant application sends a Payment Client Digital Order (via the Payment Server) to the
merchant's Payment Provider.
3 The merchant's Payment Provider directs the request to the cardholder's bank.
4 The cardholder's bank debits the cardholder's account and transfers the funds to the merchant's
account at the merchant's Payment Provider.
About e-Payment Information Flows
This section describes how information is transferred between the merchant application and the
The Merchant Application
To process a payment, the merchant application must send the required information to the Payment
Server. The merchant application uses the Payment Client to send this information to the Payment
Server using two messages:
Order is sent by the Payment Client to the Payment
Server to provide transaction
Digital Receipt is sent from the Payment Server to the Payment Client to indicate the outcome of
the transaction (that is, successful or otherwise).
? A Transaction is the combination of a Digital Order and a Digital Receipt. For each customer
purchase or order, merchants may issue several transactions.
To securely communicate transaction information between the merchant application and the Payment Server, the Payment Client:
? Formats, encrypts and digitally signs a Digital Order from the merchant application; and
? Sends the Digital Order to the Payment Server
? Receives the Digital Receipt, decrypts it and processes the results.
The Payment Server
To complete the transaction the Payment Server:
? Processes the Digital Order
? Transfers funds from the cardholder's account to the merchant's Payment Provider account and
? Returns a signed and encrypted Digital Receipt to Payment Client.
This policy contains information about your privacy. By posting, you are declaring that you understand this policy:
- Your name, rating, website address, town, country, state and comment will be publicly displayed if entered.
- Aside from the data entered into these form fields, other stored data about your comment will include:
- Your IP address (not displayed)
- The time/date of your submission (displayed)
- Your email address will not be shared. It is collected for only two reasons:
- Administrative purposes, should a need to contact you arise.
- To inform you of new comments, should you subscribe to receive notifications.
- A cookie may be set on your computer. This is used to remember your inputs. It will expire by itself.
This policy is subject to change at any time and without notice.
These terms and conditions contain rules about posting comments. By submitting a comment, you are declaring that you agree with these rules:
- Although the administrator will attempt to moderate comments, it is impossible for every comment to have been moderated at any given time.
- You acknowledge that all comments express the views and opinions of the original author and not those of the administrator.
- You agree not to post any material which is knowingly false, obscene, hateful, threatening, harassing or invasive of a person's privacy.
- The administrator has the right to edit, move or remove any comment for any reason and without notice.
Failure to comply with these rules may result in being banned from submitting further comments.
These terms and conditions are subject to change at any time and without notice.
Most Viewed Articles (in Java )
Latest Articles (in Java)
- Data Science
- React Native
- Cloud Computing
- Java Beans
- Mac OS X
- Office 365
- Tech Reviews