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AIM

The Credit Card Transaction Processing System aims to create a secure and efficient platform for processing credit card transactions, facilitating payment authorization, validation, and settlement among consumers, merchants, and financial institutions. The system will ensure data protection, reduce fraud risk, and enhance user experience while supporting multiple card types and payment gateways. Key functionalities include transaction initiation, authorization, settlement, reporting, and security management, with a focus on compliance with relevant standards and user-friendly interfaces.

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Deva Dharshan
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29 views5 pages

AIM

The Credit Card Transaction Processing System aims to create a secure and efficient platform for processing credit card transactions, facilitating payment authorization, validation, and settlement among consumers, merchants, and financial institutions. The system will ensure data protection, reduce fraud risk, and enhance user experience while supporting multiple card types and payment gateways. Key functionalities include transaction initiation, authorization, settlement, reporting, and security management, with a focus on compliance with relevant standards and user-friendly interfaces.

Uploaded by

Deva Dharshan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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AIM

The aim of the Credit Card Transaction Processing System is to design and implement a secure,
scalable, and efficient platform for processing credit card transactions. This system will streamline
the process of payment authorization, validation, and settlement between consumers, merchants,
and financial institutions. It will ensure the protection of sensitive data, reduce the risk of fraud,
and enhance the overall user experience by providing a seamless, reliable, and compliant solution
for all stakeholders involved.

PROJECT TITLE

CREDIT CARD TRANSACTION PROCESSING SYSTEM

1. INTRODUCTION

1.1 PURPOSE

The purpose of the Credit Card Transaction Processing System is to provide a secure, efficient,
and user-friendly solution for processing credit card transactions. The system aims to facilitate the
authorization, verification, and completion of payments between consumers, merchants, and
financial institutions. The system ensures seamless communication between different parties while
maintaining data integrity, security, and privacy.

1.2 SCOPE

The system covers all aspects of credit card transaction processing, including transaction initiation,
validation, authorization, settlement, and reporting. It will support multiple card types, payment
gateways, and banking institutions. The system will be integrated with various merchant platforms,
enabling them to accept credit card payments securely.

1.3 DEFINITIONS, ACRONYMS, AND ABBREVIATIONS


• Credit Card: A payment card issued by a financial institution that allows cardholders to
borrow funds to make purchases or withdraw cash.
• Transaction: The act of transferring funds or making a payment through the use of a credit
card.
• Authorization: The process of validating a credit card transaction before completing the
payment.
• Merchant: The business or individual accepting credit card payments for goods or services.

• Issuer: The bank or financial institution that issued the credit card to the cardholder.
• Acquirer: The bank or financial institution that processes credit card transactions on behalf

of the merchant.

1.4 REFERENCES

• Payment Card Industry Data Security Standard (PCI DSS)


• ISO/IEC 7816 – Identification Cards
• EMV (Europay, MasterCard, and Visa) Chip Standards
• Payment Gateway API Documentation
• Financial Industry Regulatory Authority (FINRA) Guidelines
• Federal Financial Institutions Examination Council (FFIEC) Requirements

2. OVERALL DESCRIPTION

2.1 PRODUCT PERSPECTIVE

The Credit Card Transaction Processing System is a web-based application that connects
merchants, consumers, and financial institutions for the purpose of processing and verifying
payments. It will function as an intermediary to ensure secure communication and facilitate the
seamless transfer of funds. The system will be integrated with the existing infrastructure of banks
and payment gateways.
2.2 PRODUCT FUNCTION

The core functions of the system include:

1. Transaction Initiation: Allowing merchants and consumers to initiate payments securely.


2. Authorization and Verification: Validating card details and ensuring that sufficient funds
are available.
3. Transaction Settlement: Completing the payment by transferring funds from the
cardholder’s bank to the merchant’s account.
4. Reporting: Generating transaction reports for both merchants and financial institutions.
5. Security Management: Ensuring that all data transmitted during the transaction process
is encrypted and compliant with security standards.

2.3 USER CHARACTERISTICS

The primary users of the system are:

• Consumers: Individuals who make purchases using credit cards.


• Merchants: Businesses or individuals who accept credit card payments for goods and
services.
• Issuing Banks: Financial institutions that provide credit cards to consumers and approve
transactions.
• Acquiring Banks: Financial institutions that process transactions on behalf of merchants.

Additional users may include system administrators and support staff who maintain the system.

2.4 CONSTRAINTS

• Security Compliance: The system must comply with all relevant security standards,
including PCI DSS.
• Availability: The system must be available 24/7 with minimal downtime for maintenance.
• Scalability: The system must be able to handle a large number of simultaneous transactions

during peak times.


• Latency: Transaction processing time must be minimal to ensure a smooth user experience.
• Cross-Platform Compatibility: The system should be compatible with various devices,
including mobile phones, tablets, and desktop computers.

3. SPECIFICATION REQUIREMENTS

3.1 FUNCTIONAL REQUIREMENTS

1. Transaction Authentication: The system must authenticate the credit card details
provided by the consumer, ensuring that the transaction is valid.
2. Authorization Process: The system must communicate with the issuing bank to authorize
the transaction before proceeding.
3. Transaction Reconciliation: The system must reconcile payments to ensure that the
correct amounts are deducted and transferred.
4. Notification: The system must notify both the merchant and the consumer of successful
or failed transactions.
5. Refund Handling: The system must support the ability to process refunds in case of errors
or disputes.
6. Fraud Detection: The system should include features for detecting and preventing
fraudulent transactions.

3.2 NON-FUNCTIONAL REQUIREMENTS

1. Performance: The system should process a transaction within 2-3 seconds to ensure a
fast user experience.
2. Security: The system must implement end-to-end encryption and comply with PCI DSS
standards.
3. Availability: The system must have 99.9% uptime, ensuring reliable service.
4. Usability: The system should be user-friendly for both merchants and consumers.
5. Scalability: The system must support the growth of transactions, with a scalable
infrastructure.
6. Backup and Recovery: The system must have an automated backup and disaster recovery
plan in place.

3.3 INTERFACE REQUIREMENTS

1. Merchant Interface: The system must provide a secure web portal for merchants to view
transactions, process payments, and generate reports.
2. Consumer Interface: The system must offer a user-friendly checkout page for consumers
to input payment details.
3. Banking Interface: The system must be able to interface with multiple financial
institutions for transaction authorization and settlement.
4. Admin Interface: The system must include an administrative interface for system
monitoring, user management, and troubleshooting.

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