How online payment processing works

Online payment – the ability to pay for goods or services on the Internet or through a mobile application without using banknotes. Usually carried out directly on the site or in the mobile application of the seller.

As a rule, the online payment algorithm looks like this:

The buyer chooses a product or service.
Seller summarizes purchases and invoices.
The buyer agrees to pay the bill and confirms this by entering bank or other payment details.
The bank or payment provider confirms the identity of the buyer and the availability of funds in the account to pay for the purchase.
The seller confirms the purchase, and the bank or payment provider transfers the funds to the seller’s account.
What types of online payments are available?
Internet acquiring
This is the most popular way to make online payments. It is a transfer of funds from the buyer’s bank card to the seller’s account with the participation of the bank and the processing company. The processing company provides an interface for making purchases online and performs the process of debiting or crediting of money. It may belong to a bank or be an independent entity.

Payment information is confirmed using 3D-Secure security technology, which allows you to authenticate the buyer, for example, by sending SMS to your phone.

Electronic Wallets
Require a wallet from the seller and the buyer for the transfer of electronic money. For example, these are Yandex.Money, QIWI and WebMoney. Companies provide plug-ins to merchant sites for easy settlement.

WebMoney charges a fee of 1.8 to 5.75% for each payment, and for $ 5 offers to create a button or widget that can be placed on the site. You can find out the commission for QIWI only upon signing the contract. When making a transfer in the Yandex.Money service, the sender is charged a fee of 0.5% of the payment amount, but not less than 1 penny. Payment data is transmitted using SSL or TLS cryptographic protocols.

SMS payment
This is a debit from a mobile phone account for purchases or services. For example, pay for content in games. Suitable for business, where a lot of payments with a small check.

This method is used quite rarely due to the high cost and small amounts on mobile user accounts. The commission of the SMS aggregator, depending on the category of payment and the operator, ranges from 14 to 27%.

Payment through Apple Pay, Android Pay or Samsung Pay
These mobile payment systems use card payment data tokenization. The smartphone contains a token, which is access to the data of the card of the buyer, from which the funds are debited. You can confirm the purchase using Touch ID, Face ID or password.

Online payment using terminals
It implies independent interaction of the client with the terminal. The QIWI, Svyaznoy, or Euroset payment terminals are suitable for this. The seller must first conclude an agreement with the operator of the terminal, which connects the payment for business services.

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