Using Payments Cards Online Processing credit cards online authorization Determines whether a buyers card is active and whether the customer has sufficient funds settlement Transferring money from the buyer's to the merchants account Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 Using Payments Cards Online • Processing Credit Cards Online authorization Determines whether a buyer’s card is active and whether the customer has sufficient funds settlement Transferring money from the buyer’s to the merchant’s account
Using Payments Cards Online Processing credit cards online payment service provider(PSP a third-party service connecting a merchants EC systems to the appropriate acquirers. PSPs must be registered with the various card associations they support Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Using Payments Cards Online • Processing Credit Cards Online payment service provider (PSP) A third-party service connecting a merchant’s EC systems to the appropriate acquirers. PSPs must be registered with the various card associations they support
Using Payments Cards Online Key participants in processing credit card payments online include the following Acquiring bank Credit card association Customer Issuing bank Merchant Payment processing service Processor Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 Using Payments Cards Online – Key participants in processing credit card payments online include the following: • Acquiring bank • Credit card association • Customer • Issuing bank • Merchant • Payment processing service • Processor
Using Payments Cards Online Fraudulent credit card Transactions Address Verification System(AVS) Detects fraud by comparing the address entered on a Web page with the address information on file with cardholder's issuing bank Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 Using Payments Cards Online • Fraudulent Credit Card Transactions Address Verification System (AVS) Detects fraud by comparing the address entered on a Web page with the address information on file with cardholder’s issuing bank
Using Payments Cards Online card verification number (CVN Detects fraud by comparing the verification number printed on the signature strip on the back of the card with the information on file with the cardholders issuing bank Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 Using Payments Cards Online card verification number (CVN) Detects fraud by comparing the verification number printed on the signature strip on the back of the card with the information on file with the cardholder’s issuing bank