A Guide to Online Money Transactions Processing

Using credit and debit cards has made shopping and paying bills so much easier for us. When we present credit cards or debit card at a store payment counter or use ebay.com, the simple act of swiping the card or entering card details masks the incredible complexity involved in the world of online financial transactions.

The sophisticated technology behind Internet banking and e-payments enables the movement of funds or money quickly and efficiently. Security for such online funds transfer is of great importance. Technology is being constantly updated to provide better levels of security for such commercial transactions.

At transactmoney.com, we take a look at all aspects of online financial transactions including Internet banking, money transfer to India, merchant accounts, saving money, credit or debit cards, and payment gateways and most importantly, the security considerations involved.

Here’s a bird’s eye view of the world of electronic money transactions.

Internet Banking

There are very few banks today which do not offer e-banking or Internet banking for their customers.

Some of the services offered by e-banking include:

• Online payment of electricity, water, phone and tax bills
• Electronic funds transfer to other accounts
• Credit and Debit cards issue and processing
• Loan applications

Payment Gateways and Merchant Accounts

While most major stores or retailers accept payments via credit or debit cards, online shopping sites make e-payments the standard.

To enable processing of e-payments via credit and debit cards, businesses need to use:

• Merchant Accounts – In order to accept e-payments through credit or debit cards, businesses need to set up Merchant Accounts with banks. The merchant account bank plays a crucial role in the processing of payment transactions.
• Payment Gateway – As the name suggests, a payment gateway is the route through which an electronic payment has to travel in its journey of validation, authorisation and approval. Its main function is to transfer payment information from a website or special payment device to other processing services associated with the credit card issuing or merchant bank. It receives the authorisation or failure responses and conveys it to the retailer or customer.

How Payment Gateway Works

Here’s how a credit or debit card transaction is processed through online payment gateways:

• Card information – The credit or debit card details are entered on a website or special payment device associated with the payment gateway. The financial information is then encrypted and sent over the “HTTPS” secure internet protocol to the payment gateway server.
• Processing of Card Details – The details regarding the transaction are sent by the payment gateway service to the merchant bank which in turn requests authorisation response from the card-issuing bank or card association.
• Response – The payment gateway receives the response and conveys it to the customer in the form of e-messages or receipts.
• Payment Settlement – The payment is settled and received at the merchant account.

Online Financial Transactions Security

Security procedures for e-funds transfer include:

• Encryption and secure transmission using the HTTPS internet protocol.
• Verification using passwords
• Using digital signatures

And for loaning money, apart from Cash advance , people are relying a lot on credit cards these days. But this actually increases your chances of borrowing money. Yes, you will require that extra money, and one option is 0 apr balance transfer credit cards. Apart from helping you to save cash and move your debt, 0 apr balance transfer will also help you to make cash out of it with firms that don’t have balance transfer fees.

Do explore this site for more information on online money transactions and e-security.

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