Architecture SystemDesign

【Architecture】System Design - Payment System

Posted by 西维蜀黍 on 2025-05-22, Last Modified on 2025-05-23

Background

Term

Tokenization – Replacing sensitive data (e.g., credit card number) with a unique token.

Transaction Terms

Settlement – Transfer of funds from buyer to seller after a transaction is authorized.
Clearing – The process of reconciling and confirming transaction data before settlement.
Chargeback – A reversal of a payment initiated by the cardholder via their bank.
Refund – Returning money to a customer for a completed transaction.

Merchant & Acquirer Terms

Merchant – The business accepting payment.
Acquirer (Acquiring Bank) – The bank that processes credit/debit card transactions for merchants.
Issuer (Issuing Bank) – The bank that issued the card to the customer.
MDR (Merchant Discount Rate) – Fee charged to merchants by acquirers per transaction.

System & Infrastructure Terms

Payment Gateway – A service that authorizes and processes online payments.
Payment Processor – A company handling transactions between merchants and financial institutions.
ACH (Automated Clearing House) – US-based network for processing electronic payments (e.g., direct deposits).
SWIFT – Global network for international bank-to-bank payments.

Reference

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