Online recharge – Everything You Need to Know of the Backend Process
Nothing can be more comforting than the fact that most of the regular monthly jobs can now be done via internet. From paying utility bills to transferring money from one bank account to another; from online recharge of prepaid connections to ordering the monthly grocery, almost any transaction involving payments can be completed in matter of few minutes using the online medium.

But how does all this happen? What technology facilitates the online payments at the backend?

Online recharge involves e-payment. That means you pay for recharging a service without the use of cash or cheque that is actual money. The money here is transferred via the electronic medium. It is common knowledge that the electronic medium has become a preferred mode of shopping or commercial activity that include making and collecting payments as key parts to complete the transaction.  As per statistics available, around 1.66 billion people around the world purchased goods from the online medium in 2017. The report also revealed that in the second quarter of 2017, about 77% of Indians (based in India) bought goods or services online. If these figures are treated as reference points, ecommerce and online shopping seems to be replacing all other forms of shopping and buying activity.

When a consumer or a buyer shops online or requests for online recharge of a service, there are two technologies in between the buyer and the service provider that facilitates the entire processing.

• The first technical component is the payment gateway. These are highly specialized software that links the service provider’s site or the reseller’s site to network which will process the payment.

• The second is called the payment processor that pushes the requested payment transaction through the network and coordinates with the bank or the credit card company at the backend.

When a customer selects the payment mode on the payment page during online recharge, he is asked to provide details like his card number, expiry date, bank account id, password etc. This information passes through the payment gateway whose main task is to encrypt the data so that all relevant information is secured and guarded against hacking. Once that is done, it sends the information to the payment processor which in turn checks with the customer’s bank or the credit card company for the availability of enough balance or credit in the customer’s account. The bank approves or disapproves and debits the amount or rejects depending on the availability of balance in the account. Based on the bank’s response, the payment processor informs the site that the payment has been approved or rejected so that the ecommerce site can accordingly proceed ahead. Meanwhile, the payment processor simultaneously informs the service provider’s bank to credit the said amount into the provider’s account.

All this happens in just about two seconds or bit more and the transaction is completed. The customer is consequently informed about the success or failure of his request of online recharge through SMS.