How does online bank card payment work?


What is online bank card payment?

It is paying for purchases online. The customer selects the product in the web shop from the comfort of his home, makes the purchase by using his bank card and receives the purchased goods.

The seemingly simple act of paying online with a bank card takes only a few seconds, but it consists of countless complicated steps. We would like to present these steps in an understandable way.

Steps of the online bank card payment

While browsing the merchant's website the customer decides that he wants to purchase the selected product or service. It is important to clearly display exactly how much the customer will pay, for what, and in which currency. The customer clicks on the checkout button.

At this point, the customer is redirected to Escalion’s secure payment page. All data necessary for the purchase and the identification must be provided on the payment page. Part of the data required to execute the transaction is indicated on the bank card, the other part is personal details that assist in controlling, identifying and filtering out potentially suspicious transactions. The more information we request upon the purchase, the more accurately we can eliminate the possibility of fraud. This serves the security of the consumer and the merchant alike.

If the customer has a question while on the payment page, he can immediately contact our non-stop multilingual client service by phone or e-mail.

If the customer filled out the payment page accurately and clicked on the checkout button, the transaction is initiated.

First, based on the indicated bank card data the Escalion system checks whether the bank card is valid and if the proper amount is available on the bank account. If the card is not valid, or the account cannot be charged, then the Escalion system denies the transaction, therefore the merchant does not suffer any damage.

If the bank card and the funds are validated, further chances of fraud must be eliminated in order to protect both the customer and the merchant. The Escalion system verifies whether the provided name, address CVC2 and code correspond. For example if the system detects, that someone with a Peruvian address wants to pay with a Hungarian bank card from Kenya, it will get suspicious and the analysts will be notified. They in turn check the collected data and decide whether a person of Hungarian origins studying in Peru is on a research trip, or the card information was stolen.

If everything is in order, the transaction processing continues.

The Escalion system notifies the cardholder’s issuer bank that it can send the money to the special internet merchant account maintained by the acquirer bank . The merchant account is a technical account that allows the merchant to accept online bank card payments in the web shop. Without a merchant account, online bank card payments cannot be accepted.

If all opportunities to commit fraud have been excluded, the transaction is completed, the customer receives a screen notice stating that the purchase is successful, and the merchant can check the transaction in the merchant admin. Since the data is processed immediately, the transaction can be checked after a couple of seconds by the customer on his bank account and by the merchant in the Escalion merchant admin.

The Escalion merchant admin allows users to monitor transactions, prepare reports, statistics and draw graphs. From this tool, data can be exported as well. The statements will allow you to optimize your sales.

Eventually, the amounts generated by the purchases are transferred from the merchant account to the account of the merchant’s company. A merchant account cannot be used as a regular bank account, the proceeds must be transferred from the merchant account to the regular bank accounts of the merchant.

Controlling the data of online bank card payment and the transfer of funds between banks during the purchase transaction.

Online bank card payment takes 3 seconds.

  • The cardholder enters on the payment page the data necessary for the purpose of the purchase. The request is transferred to the acquirer bank.
  • The acquirer bank transmits the request to the bank card network in order to find the bank of the bank card holder.
  • The card company contacts the issuer bank and requests that the transaction be approved.
  • The issuer bank approves the purchase and sends a response code.
  • The card company bank sends the response code to the acquirer bank.
  • The acquirer bank sends the response to the merchant.
  • The purchase is completed and the customer receives what he bought.

The procedure can be executed in the presence of card (card present), if we pay with the bank card in a shop or without the card present (card not present) in case of online purchases. Escalion provides the conditions of online, internet trade by conducting the communication between the merchant and the acquirer bank.