An online payment is a digital transaction initiated through a website, application, invoice link or other internet-connected channel. It can use cards, bank transfers, wallets or local payment methods.
How does an online payment work?
The payer selects a method, provides or authorizes payment information, and the merchant’s provider routes the transaction to the relevant bank or scheme.
Authorization versus settlement
An approved authorization or initiation does not always mean funds have settled. The merchant should track final status, returns and disputes.
Which costs may apply?
Costs can include processing, interchange, network, cross-border, currency conversion, refund and chargeback fees.
What security controls are needed?
Use secure data handling, authentication, fraud screening, access controls, transaction monitoring and clear customer confirmation.
What should be reconciled?
Link the customer order, payment attempt, provider reference, fees, settlement deposit, refund and dispute to the accounting record.
