Premium Essay

Some Payment Gateway Service Description

In:

Submitted By muktadir
Words 2244
Pages 9
Authorize.net

About the organization
Authorize.Net is a payment gateway service provider allowing merchants to accept credit card and electronic checks payments through their Web site and over an IP (Internet Protocol) connection. Authorize.Net claims a user base of over 305,000 merchants, which would make them the Internet's largest payment gateway service provider.
In November 2007 Cybersource purchased Authorize.Net for $565 million. Authorize.Net was originally purchased in 2004 by Lightbridge for $82 Million.
Function
Credit card processing diagram of authorize.net:

Authorization Settlement/funding

The major steps in the process are:
Step 1: The merchant submits a credit card transaction to the Authorize.Net Payment Gateway on behalf of a customer via secure Web site connection, retail store, MOTO center or wireless device.
Step 2: Authorize.Net receives the secure transaction information and passes it via a secure connection to the Merchant Bank's Processor.
Step 3: The Merchant Bank's Processor submits the transaction to the Credit Card Network (a system of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions).
Step 4: The Credit Card Network routes the transaction to the Customer's Credit Card Issuing Bank.
Step 5: The Customer's Credit Card Issuing Bank approves or declines the transaction based on the customer's available funds and passes the transaction results back to the Credit Card Network.
Step 6: The Credit Card Network relays the transaction results to the Merchant Bank's Processor.
Step 7: The Merchant Bank's Processor relays the transaction results to Authorize.Net.
Step 8: Authorize.Net stores the transaction results and sends them to the customer and/or the merchant. This step completes the authorization process – all in about three seconds or less!

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