4. Transaction

This is where the payments start…. Different payment methods have different transactions flows and some of the payment methods can have different flavours of flows.

1. Cards:

Here is the simple card flow

1. Prologue — Payments

‘Life moves’… so do people and money… In my short career, I worked in companies that are specialised in moving people and moving money.

First half of my career (Pre-MBA), I worked as software developer with Automotive Giants in different geographies and developed…

13. Save Card / Card Vault

You might have noticed that many merchants give option to ‘save card for future purchases’. Card vault is important for a merchant because,

• Success rate of transaction done with saved cards is higher than regular transactions

5. Settlement Time

Main purpose of online payments is getting ‘money’ from user. So ‘settlement’ is the crucial part of the payment cycle. Let’s assume transaction was successful, when will merchant get the money and how much?

8. Refunds

Refunds are essential part of online business… we cancel tickets, we return product. I think refunds played great role in growth of e-commerce as they installed confidence in users.

Refunds can be marked only against successful transactions. Merchant can either mark full or partial…

2. PG / Aggregator’s Charges

When various entities move the funds from point A to Point B, they charge certain fees. As merchant you would deal with an aggregator.

Main purpose of any business… to earn revenue and that’s exactly what aggregator do when they enable payments for a…

11. MID & Live ID

Banks are the one who process the payments and a payment aggregator is just a layer above those banks. To process transactions, the aggregator has to procure MID (Merchant ID) from the banks and then link those MIDs to the Live ID that of the merchant.

9. Curious Case of Chargebacks

The interesting thing about chargeback is… nothing

They are kind of boring, merchants do not like them, aggregators despise them… but chargeback are important as they safeguard cardholders.