Online Processing

Online processing is the delivery of electronic data to submit an online payment. Online processing involves the use of a secure payment terminal (payment gateway), of which the online buyer will be directed to after confirming their order at an e-commerce store. The data is then sent to the acquiring bank, which then sends a query to the issuing bank in order to ensure the funds are available in the account of the purchaser. Once the issuing bank receives a query, it will then send a response code (either positive if the account has available funds or negative if the amount is not available) to the acquiring bank, which will then forward the response code to the payment gateway.