SCI (Shop Cart Interface) – special software that accepts and transfers funds from various payment systems to the merchant’s merchant account. That is, SCI is a gateway for receiving money, which transfers the buyer from the payment page of the online store of the seller to the secure payment page of the payment system, and after the operation is completed, returns it to the online store again. This ensures consistent interaction with customers, regardless of which payment technology a particular payment system uses. SCI has extensive functionality that allows you to implement various options for interaction between seller and buyer.
Merchant Account (Merchant) – a special account with which you can receive online payments through various payment systems – from VISA, MasterCard, American Express and electronic wallets Web Money, Yandex Money, Qiwi, etc. .d. The list of payment systems, the money of which a particular merchant account can accept, depends on the acquiring bank or other financial organization that provided this account. The same organization is engaged in the conversion and transfer of funds received on Merchant to the bank account of the owner of the merchant account.
Billing – a set of processes for tariffing services, determining their volume, billing users for the services provided and transferring their money to the accounts of the company that provided these services. Billing requires software, hardware, banking and legal software, which are combined into a system. Billing services are provided by specialized companies.
Internet acquiring – technology for receiving funds from various payment systems via the Internet. In addition to the buyer and seller, the following participants in the process participate in the Internet payment process:
- Issuing bank – the bank that issued the card from which funds for the purchase will be debited. It can also be an electronic payment system, the money of which will be used to pay for the purchase.
- Acquiring bank – the organization in which the seller’s merchant account is located and to which funds will be received from the buyer
- Processing center – an organization that, using its software, provides Internet communication between a buyer, seller, issuing bank and acquirer.
Internet acquiring technology consists of the following operations:
- After selecting a product, the processing center (PC) transfers the buyer to a secure payment page where he enters the necessary payment details (for payment by credit card, this is her number, expiration date, name and surname of the owner, code CVV2 / CVC2). </ li>
- The PC sends these data to the issuing bank, where the buyer is authorized and the transaction is checked for the availability of the required amount on the card. The issuing bank also sends information about the upcoming transaction to the international payment system (MPS) that owns the card (VISA, MasterCard, American Express).
- If the Ministry of Railways and the issuing bank approved the transaction, the PC reports the information on it to the acquiring bank and through the PC it issues an invoice to the issuing bank to write off the money from the buyer’s card.
- The issuing bank writes off the money from the buyer’s card and through the PC informs the acquirer bank about it.
- The acquirer bank credits money to the merchant’s account of the seller minus the commission for its services and through the PC informs the seller, the Ministry of Railways and the bank to the issuer.
- The issuing bank announces the debiting of money to the buyer.
Payment processing is a set of online payment processing operations. It is carried out by a processing center. It is necessary to distinguish between the processing of bank cards, which is carried out through POS-terminals and the processing of electronic payments (payment by bank cards and using electronic wallets on websites) – Internet acquiring.
Recurrent payment (recaring) – regular automatic debit of the agreed amount of money from a bank card. Usually, the need for recaring arises when paying off a loan or paying for a permanent service, for example, for mobile communications. Recurrent payment services provide certain services (in particular, our company Wellcoinpay). To do this, the user needs to register on the service, create a personal account and from it make one payment using a bank card. After that, the system will offer to create a template in which you need to specify the amount, frequency of debiting money or fixed dates of debiting. A recurring payment at the request of the user can be stopped at any time.
Widget – a compact program for performing certain functions – informing (for example, about the receipt of money in the account, weather, time, news, etc.), messaging. Widgets can be located on the desktops of computers or embedded in browsers. A variety of widgets is a payment widget, which is placed on the pages of an online store. It allows the buyer to pay for the goods without leaving his page. In addition to the traditional filling in of payment details, it is possible to carry out a transaction using a QR code, which is placed on the payment widget.
Digital signature (or other terms – electronic signature (ES), electronic digital signature (EDS)) – a specific cryptographic algorithm with which the authorship of an electronic document is confirmed. This is the equivalent of a regular identity card. Digital Signature (CPU) cannot be falsified by copying. It allows you to remotely interact with the owner of the digital signature with state, financial, educational and other organizations via the Internet.
The CPU consists of three elements:
- A tool that implements a cryptographic algorithm. It can be in the form of a special program – a cryptographic provider installed on a computer, an electronic cloud or a technical tool – a token with cryptographic algorithms embedded in it.
- A key pair is a set of bytes formed using a cryptographic algorithm. The first element of the “closed” pair is the digital signature key used to generate it. It should only be with the owner of the CPU and is kept secret. The second element is “public” – an electronic signature verification key that is accessible to anyone and serves to verify an electronic signature.
- CPU verification key certificate. It is issued by a certification center (CA). Its function is to associate the “public” key with the owner of the electronic signature.
Verification – a procedure for confirming something: an identity, a document, a software product, etc. Verification Examples:
- verification of a bank card to link it to the payment system;
- passport verification for obtaining a personal certificate in the Web Mani payment system;
- transaction verification – confirmation that the cardholder is making this online payment transaction, for example, using a code in SMS or confirmation in a mobile application.
Invoice ( invoice ) – a document that the seller provides the buyer with the following information:
- list of goods and services sold to the buyer;
- quantity of goods and services, their price;
- product features – weight, volume, color, etc. (for each product, this list may be different);
- terms of the transaction (for example, who is responsible for the delivery of goods to the buyer’s warehouse, etc.);
- seller and buyer details.
An invoice is the basis for transferring money for goods to the seller. Used in import and export operations. In Russian practice is not applied.
MOTO payments – the seller independently writes off money from the buyer’s bank card. For a motorcycle transaction, physical access to the buyer’s card is not required. It is enough to know its number, validity period, payment currency, amount and buyer’s mobile phone number. Moto payments allow the buyer to make purchases over the phone without going to the website of the online store.
Payment gateway – hardware and software that provides a secure connection between an online store and a processing center. Its functions:
- customer authorization;
- secure transfer of transaction information to a processing center.
The payment gateway consists of the following elements:
- Form of payment – an online store web page that contains information on the transaction amount plus a payment comment;
- Payment page – a page belonging to the processing center, to which the buyer gets by activating the payment form (by clicking on the “Pay” button). On this page, the buyer logs in and agrees to the purchase.
- Payment status page is the page of the online store that the buyer gets to after the payment process is completed.
- Payment result page – an online store page that accepts transaction data.
API (application programming interface) – program code that provides user interaction with programs (applications) or programs among themselves.
API works at 3 levels:
- interface – for user interaction with applications;
- programming – for the interaction of programs (applications);
- the actual applications for computers and smartphones.
- public – developed by companies that are used by programmers to write programs (examples: Java API, Twitter API);
- private APIs – are developed to solve specific problems and for a specific customer.
Token has two meanings:
- A device for creating a digital signature of an electronic document, as well as authorizing a user. There are two types:
- without connecting to a computer;
- with a connection to a computer (via USB port, smart cards, wireless).
- A unit of accounting for digital valuable assets. It is a register entry distributed in the blockchain chain. The following types of tokens are available:
- Utility tokens – represent value within the framework of a business model – game currency, points for some achievements, reputation, etc .;
- Equity tokens – stocks of the company in digital form;
- Asset-backed tokens – obligations for services and real goods (for example, for 1 token you will be given 1 g of gold).
Although the technology for creating a token is similar to the technology for creating a cryptocurrency, the token is not a cryptocurrency in the literal sense of the word. Differences:
- The token does not have its own blockchain;
- The value of the token is formed not only on the basis of supply and demand, but also under the influence of other factors;
- Tokens can be issued not only decentralized, like cryptocurrency (based on a specific algorithm), but also centralized (by one organization);
- Transactions with tokens are performed centrally (on the servers of the same organization).
Transaction is a transaction using a bank account. Distinguish between online (in real time) and offline transactions. The online transaction scheme is as follows:
- Using a POS terminal, information from the card is transmitted to the acquirer bank that serves this terminal.
- The acquirer bank transfers information to the international payment system (MPS), which controls this card (VISA, MasterCard, American Express).
- After approval by the Ministry of Railways, information about the upcoming transaction is sent to the issuing bank that issued this card.
- After approval of the transaction (there is no card in the stop list, the correct pin code is entered, there is a sufficient amount of money on it), the required amount is debited from the card.
- The issuing bank transfers this money to the acquiring bank, as well as the commission of the Ministry of Railways for processing the transaction.
- Information on crediting funds is sent to the seller at the POS terminal. The transaction is considered completed.
Issuer – an organization (government body) that issues assets:
- payment cards;
- traveler’s checks;
- other documents that can be exchanged for money or for them you can get goods or services.
An issue of assets is called an issue. The issuer issuing the assets in circulation must ensure the rights that are assigned to them.
Clearing payments – regular non-cash payments between individuals and legal entities for goods and services delivered and provided to each other on the basis of netting.
Clearing may be:
Centralized – made through the accounts of a special clearing organization that controls the process of netting. Typically, centralized clearing is used when there are more than two participants (multilateral clearing).
Non-centralized – offsets are made without the participation of a clearing organization. Typically, such a clearing is used between two participants (simple clearing).
User commission – money paid by the card holder to the issuing organization for making payments or withdrawing cash using the card. Commission can be calculated:
- for the period of use of the card;
- for the number of transactions completed;
- for the amount of money in each transaction.
Authorization – confirmation of your rights to the service to perform certain operations – to view messages, send money, withdraw cash, etc. Authorization can be carried out in several ways:
- by entering login and password;
- using the QR code
- by fingerprint, etc.
Conversion – exchange of one type of money (currency) and securities for other money and securities at the existing rate.
Mobile acquiring – payment for goods / services using a mobile phone / tablet connected to the Internet and to a special device – a card reader (mPOS terminal).
Data Transfer Protocol – a set of rules that govern the exchange of data between different programs. This allows you to uniformly process information from one computer equipment to another.
The standardized protocol allows the exchange of data between computer equipment of different manufacturers (for example, Bluetooth, USB, etc.).
Refund – the procedure for returning funds to the buyer after he made a payment for a product / service using a bank card. Return reasons:
- the product does not meet the declared characteristics;
- the product is defective;
- the product did not fit in size, color, etc.
the service is not provided in full or not at all.
The refand procedure is initiated by the buyer, but the seller does it. Bank participation is not required. If the seller does not agree with the claims, the buyer can use the chargeback procedure – forced refund. To do this, the buyer must contact the issuing bank. He cannot refuse to initiate this procedure, since this procedure is clearly spelled out in the agreement between the bank and the international payment system (VISA and MasterCard).
Reversal – the procedure for returning funds to the buyer after he made a payment for a product / service using a bank card. The difference from a similar refand procedure is as follows:
- with reversal, the refunded money immediately becomes available to the buyer (a refund requires several banking days);
- the reversal procedure is carried out if the funds have not yet arrived at the seller’s account.
Fraud monitoring is a fraud assessment system for transactions. It includes a set of specific criteria, rules, filters and lists against which the transaction is checked. Fraud monitoring is carried out by banks, international payment systems, as well as processing centers.
3D Secure is a technology designed to enhance security when making online payments. Its essence is that it adds another step to authenticate a user who is going to make an online payment. This step is an additional action that the user must perform in order to make an online payment. This may be the introduction of a one-time password sent in SMS to his phone, pressing the “Confirm” button in the application for Internet banking, etc.
It should be understood that not all online stores use 3DSecure technology. Therefore, a fraudster can make a purchase in them, knowing the details of your bank card. To protect your funds, you must use additional protective measures. For example, setting a limit on withdrawing money from a card with an online payment.
Receipt – a document proving receipt of something – money, goods, documents, etc. When making Internet payments, many services, at the request of the user or without fail, send him a receipt for payment, for example, for payment of utilities.