Online Payments 101 General Terms & Overview

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Eco-system - client side

✦ Credit Cards ✦ Card Holder - your client

✦ Card Associations - Visa/Mastercard Amex

✦ Issuing Bank - Bank that provide the credit card.

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Eco-system - business side

✦ Acquiring Bank ✦ Processing credit card for the merchant.

✦ Taking on financial risk in "acquiring" a merchant's

payment card transactions

✦ Payment Processor (PSP) ✦ Provides authorization, data transmission, data

security, settlement, and connectivity to payment

networks as service to the Acquiring Bank

✦ Might be the same entity as the Acquiring Bank.

✦ Merchant Account ✦ Bank account that allow business to accept cc

payments

✦ Agreement between you and acquiring bank

✦ Gateway ✦ End-point service, accept the cc details from the

customer.

✦ Transfer the cc details to the PSP

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Payment Flow 1 - Send card details to the bank

Your Website

Gateway

Card Association

PSP1 (US)PSP2 (EU) PSP3 (LATAM)

Buyer Seller

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Payment Flow 2 - Approval

Your Website

Gateway

Card Association

PSP1 (US)PSP2 (EU) PSP3 (LATAM)

Buyer Seller

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Payment Flow 2 - Provide the service/goods

Your Website

Gateway

Card Association

PSP1 (US)PSP2 (EU) PSP3 (LATAM)

Buyer Seller

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Payment Flow 2 - Settlement

Your Website

Gateway

Card Association

PSP1 (US)PSP2 (EU) PSP3 (LATAM)

Buyer Seller

BIZZABO

Much more to learn

✦ Chargeback

✦ Security

✦ Payment aggregator

✦ Market Place VS Saas VS Store

✦ All-in-one payments solutions

✦ Recurring payments

✦ Invoices

✦ Legal

Thank You! @katzboaz | @bizzabo