➢ PAYMENT GATEWAY is an e-Commerce

application service provider service that

authorizes credit card payments online. It

enable an E-commerce Merchant to

accept E-Payments through credit, debit

cards or net banking in exchange of its

Products or Services .

WHAT IS PAYMENT GATEWAY

WHAT IS MERCHANT ACCOUNT

MERCHANT ACCOUNT is basically an online bank account that will temporarily hold your money

(you are the merchant) until it is moved into your actual bank account.

Any merchant account established under an

agreement between an acceptor and a merchant acquiring bank for the settlement of payment card

transactions.

ROLE OF PROCESSOR OR PSP

CUSTOMER

ACQUIRING BANK

CARD SCHEME

ISSUING BANK

INFORMATION PSP / PROCESSOR

Merchant Bank A/C Normal Bank A/C

DIFFERENCE BETWEEN MERCHANT ACCOUNT & COMMON BANK ACCOUNT

Online temporary bank account

It may hold unlimited or huge funds

One way monetary flow

Permanent bank account

It may hold limited funds

Two way monetary flow

WHAT IS REFUND

➢ There may be occasions when you need to refund a shopper.

For example, if a shopper has not received the

goods/services they ordered, the goods/services received

were defective, or where you suspect fraud and decide not to

fulfill an order.

➢ When you make a refund, the Payment Service does various

checks to ensure that the financial institution accepts refund

instructions. If the refund request is scheduled and sent to the

appropriate financial institution. A shopper will usually receive

the refund amount you requested within 5 working days,

however, you should note that a refund may take as much as

3-6 weeks to be processed depending on the acquirer.

WHAT IS CHARGEBACK

➢ Chargeback is known as any dissatisfaction attitude

towards that service or goods.A chargeback is

essentially the reversal of a credit card transaction

which is forced directly by the customer's credit card-

issuing bank.

➢ Chargebacks are typically initiated by the credit card

holder by calling their card-issuing bank to dispute

one or more transactions. This can happen for a

number of different reasons.

TRIGGERS OF CHARGEBACK

➢ Chargeback can be triggered by:

➢ Customer disputing the transaction ➢ Customer doesn’t recognize the transaction ➢ Goods delivered but broken/ services not

rendered. ➢ Issuing bank raising alarm and chargeback

➢ Fraud Transaction: Card Stolen/Pick up card/ Fraud Charging/ Batch Charging.

DIFFERENCE BETWEEN REFUNDS & CHARGEBACKS

Initiated from Service providers to

be safe from chargebacks

Request or positive attitude

Partial or Full refund process

Initiated from the Customers

Show dissatisfaction or negative

attitude

Revert full amount only

REFUND CHARGEBACK

HIGH RISK & LOW RISK INDUSTRIES

➢ HIGH RISK INDUSTRIES consist a

higher possibility of Risk

(chargeback) EX. It Services, Tech-support, Online

Pharmacy, Resume Services

➢ LOW RISK INDUSTRIES consist a lower

possibility of Risk (chargeback) EX. E-commerce, Online shopping

ECP stand for excessive chargeback program. This

is in connection with the guidelines prescribed by

the card schemes like VISA, MASTER, and AMEX

etc. Generally, the limit is 1.5% of the sales volume.

In case the chargeback exceeds this limit card

scheme and the acquiring bank may issue a penalty.

Example to calculate ECP:

Total chargeback volume per month

Total sales volume per month

WHAT IS EXCESSIVE CHARGEBACK PROGRAM

X 100

WHAT IS PSP & TYPES OF PAYMENT SOLUTIONS ➢ Payment Solution Provider allows you to do online card

payments through multiple ways ➢ Multiple ways to do online transactions:

E-COMMERCE

VIRTUAL TERMINAL

MOTO (MAIL ORDER TELEPHONE ORDER)

WEBSITE INTEGRATION

POS

E-CHECKS & E-INVOICES

WHAT IS MOTO A MOTO merchant account is similar to a conventional internet merchant

account (IMA) in that they both offer ‘cardholder not present’ (CNP) processing solutions

MOTO accounts process payment details provided by mail order or telephone. MOTO accounts are higher risk because the cardholder is not

present. A MOTO account is accessed through a secure webpage and is therefore

operational from anywhere in the world with an internet connection.

WHAT IS VIRTUAL TERMINAL Virtual terminal credit card processing solutions from Secure Trading

allow card payments via fax, mail order or telephone (MOTO), ideal for Call Centers.

Virtual payment processing terminal is a convenient solution, allowing merchants to hand-key or swipe credit, debit or ACH transactions, 24/7,

from any device with an Internet connection.