How Does Money Flow

Transcript

1. t How does money flow through Paystack?
2. What really happens when Ibukun uses her card on Taxify. How does the money move from Ibukun’s bank account to taxify’s bank account?
3. Let’s identify the stakeholders Customer Merchant
4. The merchant requires the service of a PSP to help facilitate the transaction Customer Merchant Payment Service Provider
5. • The customer provides their payment details via a secure channel/API provided by the PSP. • PSP sends the transaction to the customer’s bank (Issuer) for authorization through the card networks or a third party processor
 • Customer’s bank requests for additional information from customer to authenticate the transaction Customer Merchant Payment Service Provider Customer’s bank (Issuer) Third Party Processor / Card Networks (Interswitch, MIGS, Paystack ) Authentication
6. • If the authentication is successful, the transaction is approved and the money is paid to Paystack through the card networks or a third party processor
 Customer Merchant Payment Service Provider Customer’s bank (Issuer) Third Party Processor / Card Networks (Interswitch, MIGS, Paystack ) Authorization Paystack’s bank - Acquirer
7. • PSP sends the instruction to move the money from the Acquiring bank to the merchant’s bank Customer Merchant Payment Service Provider Customer’s bank (Issuer) Third Party Processor / Card Networks (Interswitch, MIGS, Paystack ) Settlement Paystack’s bank - Acquirer Taxify’s Bank
8. Fraud and Chargeback • A chargeback happens when a cardholder disputes a charge with their bank • There are 2 kinds of chargebacks: Fraud and Disputes • Disputes arise when the cardholder does not get value for a transaction • Fraud happens when a transaction was unduly authorized • When a chargeback is reported, the issuing bank reports it to the acquirer. • Acquirer reports to Paystack • Paystack reports to merchant
9. Tokenization & Recurring Billing • Tokenization Service allows merchants to store card data relating to a transaction in the form of a token, without storing the actual card number. • This enables further payments to be made by supplying the token/authorization in place of the card number. • Tokenization == Single Authentication, Multiple Authorizations
10. QUESTIONS???
11. t Thank you for your time! !❤