Payment Method-Introduction to Payment

The payment system is very complicated, because as a relatively basic system, it provides services for many other systems and needs to meet different business scenarios, so it is very complicated. So without a little skill, it is unclear. Here is just a brief introduction of personal experience and understanding of payment methodology as a way to understand or get started.

Get to the point:

Payment, as an indispensable foundation of our life, especially when monetary payment develops to a certain extent, payment gradually changes from the previous barter, to currency, to centralized digital payment now, and then to decentralized electronic payment now. After the transaction is completed, payment will undoubtedly become an indispensable link in social life. In daily life, behind the use of credit card payment and the use of third-party payment (WeChat or Alipay), the operating system is often unknown, and it seems useless to learn this knowledge. Of course, it doesn't hurt to know more.

Simply understood, payment is actually the transfer of monetary creditor's rights, that is, the process of my money becoming your money. In the process of cash transaction, payment does not need any system, only someone needs to ensure the universal equivalence of money, so payment can happen anywhere without any payment system. However, when the transaction amount is huge, or the distance is too far to meet in time, or the transaction between different currencies, the payment system is urgently needed. Because of these payment scenarios, money cannot be delivered directly, and some intermediate links are needed to complete the whole payment process. The payment system provides such an intermediate process (in banking business, payment business belongs to intermediate business).

A long time ago, the intermediate process was also a payment process, just inserting a middleman between two payers, the transferor transferred the money to the middleman, and the middleman transferred it to the transferee after transportation and exchange, thus completing a payment intermediate business, which is also the basic payment system model. However, with more and more business scenarios and the development of payment tools and payment methods, there are more and more payment brands, from a middleman at the beginning to dozens of middlemen now. From just changing one hand to several hands, such as WeChat payment. From the client to the merchant, there are three hands: WeChat payment system, network connection system and banking system. The whole process is complicated, and the intermediate links and banks need to do a close division of labor to ensure the basic principles of whose money goes into whose account and whose money is controlled by whom.

"Whose?" Who is this? This is a big problem of payment. For example, my name is Zhang San, and he is also Zhang San. It was obviously my money, but it turned out to be his. Then this is obviously a joke and may cause a lawsuit. Therefore, it is particularly important to recognize the Chu people, and identity verification is particularly important. Generally, people who can't face each other in multiple links must verify 3-6 elements. Six elements (account number, account name, certificate type, certificate number, mobile phone number and mobile phone verification code) are generally verified by third parties (Alipay and WeChat), while three elements (account number, account name and password) can only be verified by the bank system. In these verifications, according to different business scenarios, the verification methods are different, and the number sent is also different. The elements of verification will be distinguished according to different business scenarios. Verifying that different elements are also a big pig's hoof for risk control. Through different risk levels, the payment system will set the payment limit for each payment method.

All online payments eventually go through the banking system, so banks bear huge accounting risks. Now, with decentralization and the development of digital currency, banks will no longer play such a role in the payment process, and accounts will fall directly on customers' wallets, not just banks.

Of course, talking about risk is beside the point. What to do now is just a question of the risk and the undertaker. Back to the payment system.

Getting the payment system to recognize people is a big deal. Of course, there is another big thing, such as sorting. For example, in a payment link, I simply transfer 100 RMB to you, that is, I decrease 100 RMB and you increase 100 RMB. No problem. We will settle it on the spot and pay it on the spot. But if there are many links, such as Alipay, Internet and bank, I will pay you. I am this bank, and you are that bank. Then I will transfer the deduction information to Alipay, and Alipay will transfer it to the bank. After the bank deducts money, Alipay will send another entry information to another bank. There are many links, and each process may go wrong. Here, it only involves a single customer to customer. So if my payment happens and there are multiple merchants and multiple payees in an order, then I need to calculate the whole account. In other words, it is necessary to distinguish clearly whose money has gone into whose account, and figure out how much everyone should go in.

Liquidation and settlement are generally together, so it is sometimes called liquidation, which means payment after calculation. But before sorting, we need to confirm whether this account comparison is realized, so we need to reconcile. Reconciliation means that you and I have to reconcile our books. If they are not correct, there must be something wrong, so we must solve it. Whether to return or make up the account requires different judgments according to different scenarios. But the only requirement is that the bank does not advance.

Reconciliation is simple. It's just a transaction. That's right. General elements are transaction date and time, transaction process, debit, credit, transaction type, transaction amount, handling fee and transaction result. In ordinary reconciliation, there are not only successful accounts, but also failed accounts, so as to avoid one party recording more and one party recording less. When an error is found, one party will take the lead (banking institution or clearing institution), and the other party will handle the error.

Write it at the back:

"Payment Methodology" introduces the third-party payment system from the perspective of third-party institutions, which may be more transaction-oriented than other fund transfer businesses, so it has limitations, but it also deeply introduces some concerns of third-party payment institutions. This book is completely dry without water.