Lesson plan
Payment processor
A payment processor is a data and communications center ("switch") that moves payment transactional data and messaging between a card issuing bank, a merchant, and a card acquiring bank (USA model) to enable financial transactions between purchasers and sellers. It processes payment information for various channels such as credit cards and debit cards or bank accounts. They are usually broken down into two types: front-end (for card authorization) and back-end (for settlements). Front-end processors have connections to various card associations and supply authorization and settlement services to the merchant banks' merchants. Back-end processors accept settlements from front-end processors and, via the Federal Reserve Bank for example, move the money from the issuing bank to the merchant bank. In an operation that usually takes a few seconds, the payment processor will both check the details received by forwarding them to the respective card's issuing bank or card association for verification, and also carry out a series of anti-fraud measures against the transaction. Additional parameters, including the card's country of issue and its previous payment history, are also used to gauge the probability of the transaction being approved.…
Article summary
A payment processor is a data and communications center ("switch") that moves payment transactional data and messaging between a card issuing bank, a merchant, and a card acquiring bank (USA model) to enable financial transactions between purchasers and sellers. It processes payment information for various channels such as credit cards and debit cards or bank accounts. They are usually broken down into two types: front-end (for card authorization) and back-end (for settlements). Front-end processors have connections to various card associations and supply authorization and settlement services to the merchant banks' merchants. Back-end processors accept settlements from front-end processors and, via the Federal Reserve Bank for example, move the money from the issuing bank to the merchant bank. In an operation that usually takes a few seconds, the payment processor will both check the details received by forwarding them to the respective card's issuing bank or card association for verification, and also carry out a series of anti-fraud measures against the transaction. Additional parameters, including the card's country of issue and its previous payment history, are also used to gauge the probability of the transaction being approved.…
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.