How do online payments work?

Answer 1

When you make an order your card details will be captured by the merchant or their payment gateway. These will be sent on securely to the merchant bank who will then notify the card issuer who will authorise (or not) the transaction. The bank will send confirmation back to the merchant/payment gateway and you will be notified. The process only takes a second or two.

Answer 2

1. Customer places an order with a merchant website.

2. Customer's card details are sent to the payment gateway (either in-house or a 3rd party)

3. Card details are transmitted to the merchant bank. They will then pass the details on to the card issuer who will authorise or decline the transaction.

4. Merchant bank sends results back to the payment gateway.

5. Payment gateway sends confirmation to merchant's site which will then inform the customer (by a message on the site or an email).