Online payment process
The online payment process includes all steps from selecting the payment method in the checkout to payment confirmation — including authorisation, authentication and settlement.
Online payment process
The online payment process (also known as the online payment flow) describes the entire sequence of an electronic payment in e-commerce — from selecting the payment method to the final credit on the merchant account.
The typical process: (1) You choose your payment method in the checkout → (2) Payment data is transmitted to the payment gateway → (3) Authorization request to the acquirer and card network → (4) Issuer verifies and authorizes → (5) Payment confirmation to merchant and you → (6) Settlement: payout to the merchant.
For merchants, the conversion rate and the cart abandonment rate in the online payment process are critical key performance indicators. Optimization levers include: fewer form fields, offering preferred payment methods, enabling guest checkout, minimizing loading times and transparent cost display before the final click.
Online payment process examples
A customer selects TWINT at checkout. They scan the QR code, confirm in the app, and the payment is processed in 3 seconds.
A customer pays by credit card. 3D Secure requires confirmation via banking app. After confirmation, the order confirmation appears.
A shop operator optimises the payment process: guest checkout, Apple Pay as the first option, shipping costs visible before checkout — the abandonment rate drops by 20%.
Online payment process FAQ
What is an online payment process?
The online checkout process includes all steps of an electronic payment in e-commerce: from selecting the payment method and authorization to payment confirmation and payout.
How can you optimize the online payment process?
Offer preferred payment methods, enable guest checkout, reduce form fields, display shipping costs early, and minimize checkout loading times.
Why do your customers abandon the checkout process?
Common reasons: Preferred payment method is missing, unexpected costs (shipping, fees), mandatory registration, slow loading times, lack of trust, or technical issues.
What happens technically during an online payment?
The payment data is sent encrypted to the payment gateway, which forwards it to the acquirer. The acquirer requests authorisation from the issuer via the card network. Upon approval, the amount is reserved and later paid out (settlement).
