How do online payment systems work?

21 Feb 2022 By PAYCEC

The following are the fundamental procedures of how an online payment system works:

  • Step 1: Customers browse your site, add items to their shopping cart, and then check out.
  • Step 2: To make a payment, buyers will enter order details as well as their credit or debit card information. Next, submit their order request. 
  • Step 3: Merchants will send back a confirmation of whether the request is approved or declined.
  • Step 4: To ensure safe and secure transmission, sensitive card data is encrypted before being processed. Here, PayCEC virtual terminal payment gateway will take over and forward the transaction details to the payment processor, which is the acquiring bank.
  • Step 5: The acquiring bank verifies the customer data, then directs the transaction information to the customer's card association, such as Visa, MasterCard, or Amex.
  • Step 6: After that, the card association routes the transaction to the cardholder’s issuing bank.
  • Step 7: Here, the issuing bank receives the request and checks that the funds available to the customer can meet the amount requested, and then sends a response that indicates whether the request is approved or declined.
  • Step 8: The response will be sent back to the payment processor, then to the payment gateway, via the merchants’ site which in turn interprets it and passes it on both to the merchant and to the customer who is checking out.
  • Step 9: Finally, if the request is approved, the merchant will fulfill the order placed by the shopper, and the order is completed successfully. In contrast, if the request is declined, the merchant will receive a notification including the reason why.

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We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.

Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.

PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.

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