Bonjour et bienvenue! Today we would like to share some simple yet comprehensive explanations on what we might possibly need the Internet acquiring & Internet payment service providers for. We are also going to draw your attention to the field of the E-commerce, why do we really need it & why is it a promising sector of the modern economy.
The Internet acquiring exercised through the Internet payment service provider is basically any kind of the Internet payments acceptances carried out with bank cards via specially developed web-interface. It is a significant pillar of the E-commerce (electronic commerce), which is the most forward-looking sector of economy including all trading & financial transactions exercised via computer networks, as well as all business processes related to carrying out such transactions.
The Internet acquiring means a credit organization’s (bank acquirer’s) activity, which includes financial settlements for the bank cards operations completed via the Internet with E-commerce organizations — that’s everything from ordering a bottle of wine online to paying for a real estate through the Internet.
Being an essential part of any business, it is obviously carried out only with the payment service providers’ support, which assists the whole process by using an authentication protocol (3D Secure & SSL) and ensuring security of every payment, as well as safety from fraudulent activities (fraud monitoring, 2-factors authentication requirements etc.).
An opportunity of online purchases undoubtedly makes a consumer’s life considerably easier. It is a very simple
process that doesn’t require any special skills or instruments — it is enough to have a bank card and the wi-fi access. It saves hours of your time and thousands of your nerve cells by relieving you from mile-long queues and eternal hanging out in the traffic.
Online shopping is at your service 24/7, operating on a global level & providing you with an urgent delivery option, it enables you to get anything from anywhere and provides you with an opportunity to purchase low-cost yet high-quality goods and services, including digital products, completely anonymously. Generally speaking, the Internet service providers significantly contribute to the living standards improvement.
Regarding potential disadvantages, it mostly comes down to negative anonymity issues causing certain difficulties with ensuring a legitimacy of some companies’ activities. Impossibility to monitor individuals or legal entities has always been a double-edged sword: an economic freedom vs. a bunch of attractive opportunities for criminals. Besides, anonymous online transactions mean — quel cauchemar! — less taxes payments can be enforced by the government.
The Internet acquiring process is quite simple. The customer chooses the goods or services he/she would like to purchase, gets re-addressed to the Internet payment service provider’s authorization page and enters the card details in the relevant field popped up on the screen — well, you already know that. Here’s what happens next.
The authentication request is formed by the payment service provider and the client’s details are to be verified by the issuing bank’s authentication system. After the authentication process has been passed, the payment service provider sends the authorization request details to the processor, which, in turn, sends the authorization request to the international payment system.
Depending on the authorization results, the processor informs the payment service provider on the transaction either approved or rejected, which, in turn, informs the customer and the Internet shop on the operation outcome, depending on which, the Internet shop either completes the transaction or cancels it. The processor sends the clearing file to the settling bank, which transfers the relevant payment amount to the Internet shop’s account. Both the customer and the Internet shop get a confirmation — et voilà! Everything is settled & everyone is happy.