What is online payment and how to accept payments online | Website Development, Web Design Company, Creative Design Solutions Malaysia : Cstudio Web Design

Online payment refers to money that is exchanged electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. When you collect a payment over the internet, you are accepting an online payment. Online payment usually is the transaction that results in transfer of monetary funds from the customer bank or credit card account to your bank account. The online payment can be done from a credit card, checking account or other clearing house like paypal for example.

Merchants accepting online payments need to comply with a list of security requirements. The online payment specific security is designed to decrease the chance of the billing and personal information being stolen. The transfer needs to occur over secure encrypted connection. In the cases of recurring billing where customer data is stored, the merchant needs to enforce a longer list of security features and protocols that are usually referred to as PCI compliance requirements. Recurring billing systems that employ online payment procedures need to be periodically scanned for security vulnerabilities.

To accept an online payment the merchant needs to have access to an Online Payment Gateway. The online payment gateway is a service provider that is integrated with the credit card and transfers the online payment information between the merchant and the payment processor.


The typical online payment process has the following stages:

1.Customer submits the payment information to the merchant. For example customer completes the payment form on the merchant website and submits the information.

2.The merchant submits the payment information to the online payment gateway.

3.The online payment gateway submits the payment to the payment processor.

4.The payment processor authorizes the payment and responds to the payment gateway

5.The payment gateway responds back to the merchant

6.The merchant responds back to the customer showing if the online payment was successful or not and taking the appropriate action.

An e-commerce online payment system facilitates the acceptance of electronic payment for online transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce online payment systems have become increasingly popular due to the widespread use of the internet-based shopping and banking.

A payment service provider (PSP) offers merchants online services for accepting electronic online payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking. Some PSPs provide services to process other methods including cash payments, wallets such as PayPal, prepaid cards or vouchers, and even paper or e-check processing.

An Internet Merchant Account (IMA) allows merchants to accept debit/credit card payments directly to their business bank account, online. Due to the stringent criteria required for an Internet Merchant Account (IMA), many smaller businesses opt for a payment processing company instead.

Using a Payment Gateway, provided by a Payment Service Provider (PSP) offers an alternative for businesses whose card-based-turnover is too low or who fail to meet the criteria for an Internet Merchant Account(IMA).

AT Integrated ecommerce platformincludes and automates all technical aspects of accepting online payments. It can accept online payments using a combination of online payment processors at the same time


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