The model below describes a standard process for Credit Card payments in an online scenario. The process assumes that Capture of the payment happens immediatly after Authorization.
Process steps
- The Cardholder (Customer) enters his card details in the payment page presented by the Merchant.
- The Merchant sends the payment information to the Payment Gateway.
- The Payment Gateway encrypts and converts the payment instruction and sends it to the Payment Processor.
- The payment processor resolves the Card Network (Visa, MasterCard, JBC, etc.) and forward the payment instruction to the correct network.
- The Card Network resolves the Card Issuer and forward the payment instruction to the Issuer Processor / Issuing Bank.
- The Card Issuer validates the transaction including checking if the Cardholder has sufficient funds. If positive, the Customer Card balance is debited.
- The Issuer Processor informs the Card Network if the transaction is succesful or not
- The Card Network forwards the result to the Payment Processor.
- If the result is positive, the Payment Processor informs the Acquiring Bank to credit the Merchant Account.
- The Payment Processor informs the Payment Gateway
- The Payment Gateway informs the Merchant about the result.
- On a positive result, the Merchant informs the Cardholder and fulfils the order. On a negative result the Merchant acts according to their own business process.