Explaination of flow of Authorize.net Payment Gateway

Wednesday, October 14, 2009

In this post, I have explained you step by step implementation of authorize.net payment gateway integration in your website and explained you what happen behind the screen in payment gateway processing.

Explanation of Step 1

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.

Explanation of Step 2

Step 2: Authorize.Net receives the secure transaction information and passes it via a secure connection to the Merchant Bank's Processor.

Explanation of Step 3

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).

Explanation of Step 4

Step 4: The Credit Card Network routes the transaction to the Customer's Credit Card Issuing Bank

Explanation of Step 5

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.

Explanation of Step 6

Step 6: The Credit Card Network relays the transaction results to the Merchant Bank's Processor.

Explanation of Step 7

Step 7: The Merchant Bank's Processor relays the transaction results to Authorize.Net.

Explanation of Step 8

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!

Explanation of Step 9

Step 9: The Customer's Credit Card Issuing Bank sends the appropriate funds for the transaction to the Credit Card Network, which passes the funds to the Merchant's Bank. The bank then deposits the funds into the merchant's bank account. This step is known as the settlement process and typically the transaction funds are deposited into your primary bank account within two to four business days.

Hope this post has helped you,
If yes, Please put a comment below to encourage us.
Thank you

Rajesh Singh,
Indianic Infotech Ltd


sanket said...

Thank You sir,

Before this i don't know about payment gateway but when i read your post i completely understand payment gateway flow and it is very much used for my project.


Sanket Vyas

Anonymous said...

it's great

this is the best explanation on authorized .net i ever seen before.
It halp me to understand the flow of the process.

Ravi Patel