Making payments over the internet using a card is called online payment.
What types of transactions are carried out using online payment systems?
Using online payment systems,
- e-collection,
- collection over the internet,
- e-commerce transactions can be carried out.
What happens behind an online payment?
When the user enters their card details on the payment page, the information travels from the merchant's infrastructure to the payment gateway, and from there to the bank and the card scheme. If the issuing bank approves the transaction, the approval response returns along the same path.
Three factors stand out from a security perspective: encrypting the connection (TLS), PCI DSS compliance when storing and processing card data, and verifying the cardholder with 3D Secure. Merchants reduce their liability by generally using the payment institution's infrastructure instead of holding card data in their own systems.
For a successful online payment experience, a short form, clear error messages, and a mobile-friendly payment page are also factors that reduce payment abandonment.
