1. PAYMENT GATEWAY Presented by SHUJA ASHRAF SHAH ENROLL: 4471
7TH SEM CSE

2. INTRODUCTION
A Payment Gateway is an e-commerce application service provider that authorizes payments for e-business, online retailers etc.
The gateway itself is simply a secure online link between the merchant and the customer’s bank. Sensitive information, such as credit card numbers, needs to be protected from fraudulent parties.
Payment gateways encrypt the sensitive information such as credit card details to ensure that the information passes securely between the customer and the merchant.

3. Steps Involved Buyer initiates the purchase.
Site Collects the buyer Info.
Buyer is sent to Payment Gateway.
Payment Gateway Collects the Credit Card Info.
Payment Gateway handles the transaction.
Payment Gateway verifies the purchase.

4. Online Customer: Entity who browses the e-commerce website and who will buy he products by making timely payments.
Merchant: A merchant is the seller who will receive the payments made by the customer.
Banks: there are two types of banks
Client Bank : It holds the clients account and validates the customer.
Merchant Bank : It holds Merchants account and is responsible for management and fraud control etc.
Payment Gateway : A payment gateway is connected to all the customers, merchants & banks through internet and is responsible for speed, reliability and security of all transactions that take place.
PRELIMINARIES

5. Framework Overview: Connection & transaction Send Data Send Payment
Payment gateway
Online Customer
Client Bank
Merchant Bank
Merchant
Send Data
Connection & transaction
Send Payment
Merchant Website
Send data &
receive payment
Merchant Website
Transaction & Confirmation
Account Update

6. Categories of Payment Gateways:
There are mainly two categories of Payment Gateways :
Hosted Payment Gateways
Shared Payment Gateways
Hosted Payment Gateways:
Hosted Payment Gateways are those that direct your user away from your ecommerce website.
While making payments, the customer is redirected to the real gateway page by clicking the gateway link. This leaves merchants website for some time before returning back.
The benefit of these gateways is that you do not need a Merchant ID since no confidential details are needed from your website. Examples here include PayPal, WorldPay and Nochex.

7. Categories (cntd…) Shared Payment Gateway:
While making the payments, a customer is directed to the payment page and not out of merchants website.
Here, a Post form is used once one clicks on a payment link/button.
The payment page is maintained securely by the payment gateway.
After all details about credit card and other required fields are complete, the user fully gets back to the main website.
The main benefit is that one does not get away from your website thus fast and easy to use. Example of a gateway is eWay.

8. Security Is your money in safe hands?
Buying stuff online is easy, saves time and money, however there’s a risk involved.
Each time we pay for something, we input our credit/debit card details to a third party (other than our bank). And considering the virtuality of online medium and the risks associated with it, there’s always a sense of fear for online fraud.
The e-commerce platforms and banks tend to maintain a robust framework to securely carry out the transactions for the goods and services we pay for.

9. Security (cntd…) Data Encryption:
Data encryption is one of the main security method used in payment gateways.
Once you enter your card details in the payment gateway, it gets encrypted by using payment gateway’s public key and can only be decrypted by the payment gateway’s private key.
The gateway uses an algorithm which makes sure that no unauthorized party can decrypt the encrypted data when being transmitted through the network.
These algorithms usually follow symmetric (same key for encryption and decryption) or asymmetric (different key for encryption and decryption) cryptography to mask data so that unauthorised sources are unable to read or intercept it.

10. Security (cntd…) Secure Socket Layer (SSL):
Secure Socket Layer (SSL) is the standard security protocol used in online transactions to establish an encrypted link between a web server (where the payment is taken) and a browser (where the payment information is entered).
E-commerce websites uses SSL to authenticate their identity to the visiting customers and to protect sensitive information such as card details entered by the customers.
It is advisable to make an online transaction on websites which have SSL certification. You can check out the same for a website by noting the https prefix in the URL address of the website in the browser and by locating the Padlock symbol in the web browser.

11. Security (cntd…) Secure Electronic Transaction (SET)
Developed by Visa and MasterCard, the Secure Electronic Transaction (SET) protocol is used to aid the secure transmission of customer’s credit/debit card details during online transactions.
The protocol blocks out the details of credit card information, thus preventing merchants, hackers and unauthorized parties from accessing the sensitive information.
SET uses Dual Signature to link two messages that are intended for two different receipients.
SET uses customer digital signatures to maintain confidentiality, authentication and data integrity.

12. Types of Payment Gateways
PayPal
2Checkout.com
Amazon Payment
Google Checkouts
Securepay.com
Authorize.net
PayUmoney
PaySimple

13. Features of Payment Gateways
Transaction & Network Security
Secure with latest security technologies like SSL
Fraud Screening features
Reduces risk of theft and loss
User friendly And speedy in processing
Support for multiple forms of Payment
Time Saving
Ease of use

14. Disadvantages of Payment Gateways
Payment gateways highly depend on internet connectivity
Lack of Anonymity
Risk of being hacked
Fees

15. Conclusion
The rise of e-Commerce has led to the development of sophisticated payment gateways that can be integrated seamlessly with your website without the need for specialized coding knowledge.
Payment gateways not only perform the basic function of processing credit card transactions over the web, but also bring a host of security and fraud prevention features that protect both merchants & customers.
The key to taking Payments online is to have a secure system that doesn’t compromise the customers personal information.
Payment Gateway acts as an interface between online website and the bank.

16. Thank You !