The Life Cycle of an Online Payment

1. Charlotte visits an online store called ‘Jane’s Emporium’. She clicks ‘Buy Now’ on a pair of shorts and enters her card details and billing information.

2. The shorts cost £35.99. There are no delivery fees. 

3. Jane’s Emporium’s payment gateway encripts the data for security purposes.

4. Jane’s Emporium’s acquiring bank sends the authorisation request to VISA.

5. VISA communicates with Charlotte’s bank to validate her card, undergo security checks and authorise the payment.

6. Charlotte’s bank conducts security checks, ensures there are funds available and authorises the payment of £35.99.

7. Charlotte’s bank passes on £35.99, and is charged 50p* from VISA.

8. VISA confirms the sale, passes on £35.99 and bills the acquiring bank the 50p* plus a 5p* fee.

9. The acquiring bank confirms the sale, passes on the £35.99 and charges Jane’s Emporium 65p* (the 55p* plus a 10p* fee)

10. Jane’s Emporium’s payment gateway confirms the sale and charges Jane’s Emporium a 5p* fee.

11. Jane’s Emporium displays a confirmation to Charlotte and Jane’s Emporium are ready to deliver the shorts.

12. Jane’s Emporium receives £35.99 and is billed 70p* for this transaction at the end of the month.