Risks to safety of e-commerce Security is the key factor behind widespread use of electronic monetary transactions worldwide. The possibility of frauds have been a real threat for the retailers from the beginning of commerce, but with the advent of the internet and online shopping as well as the growth of e-commerce sites have made it more real than it ever was. Online fraud protection is now integral to the operation of a successful web business. It has become a thing of critical importance for the banks to provide secured credit card processing services to the bank’s credit card customers.
Steps for secured credit card processing involve the following: If a purchaser makes a purchase from a secured payment gateway, then the gateway performs many tasks in the following chronological order: Customer makes a purchase either by ordering online or by swapping the credit card at a merchant’s shop. If the payment method is online, the customer's internet browser engine encrypts the information to be forwarded to the merchant's web server. The retailer now sends the transaction information to the transaction gateway.
The transaction gateway now transfers the details of the transaction to the specific payment processor of the merchant’s acquiring bank, which operates the merchant’s bank account. The transaction processor of the acquiring bank then transfers the data to the Bank Card Associations like American Express/MasterCard/Visa. The Credit Card issuing bank then receives the requests and then transfers a response code back to the transaction processor regarding the approval of request or regarding the reasons for denial of the request. The transaction processor transfers the response of authorization or denial to the transaction gateway. Now the transaction gateway forwards the response to the merchant’s site where the purchase is taking place, the response is treated as a valid response to check the validity of payment. The process is termed as the Authorization. This complete process does not take more than two or three seconds. The retailer website then fulfills the customer’s order. The retailer then transfers all the confirmation to the acquiring bank for transfer of funds. After the authorization has been received by the acquiring bank, it makes a request for transfer of funds in a lot from the Credit Card issuing bank of the customer. After receiving the request, the credit card issuing bank processes the requests and authorization code to check account details of the customer, and finally, transfers the sum to the acquiring bank minus some processing fees. Then the acquiring bank transfers the sum into the account of the merchant. A small percentage is subtracted in the form of processing fees. This complete process starting from approval of request of purchase to the actual transfer of credit requires about two to three days.
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