Carding Authorization [Tutorial]
How are u today ? Hope ur all fine & happy.
Alright, I would like to share little tips on how to card something so that u can do it successfully. Well, our hope is the item u carded can be delivered to ur drop address “safely” (from ur point of view). Basically, what we are talking about is CNP (Card Not Present)/online-based transaction.
Little introduction on credit card types
Can we make a code to identify a card type ?
We can design the algorithm using Luhn algorithm and then code it with almost all programming/webprogramming languages to be a credit card digit validation tool. U can do this with Python, Perl, Delphi, C/C++, VB/VB.NET, PHP, AJAX, etc. I won’t explain more about Luhn Algorithm, since it relates with mathematical. And I think u can understand it within several minutes. Here’s the link u can review it later :
0x0010 : Understanding merchant account, payment gateway, and third-party payment gateway
Now u should hv understood yet about credit card type and how to validate it (the digits) using ur own great tool.
We’ll take a look at the difference between merchant account, payment gateway, and third-party payment gateway.
1. An e-Commerce merchant account
2. A payment gateway
3. Third party processors
And how it works actually ? Okay, below performs procedures which used by the payment processor gateway to charge customer’s credit card until there’s full settlement of funding to the merchant. U should really understand well these procedures !
A customer places order on website by pressing the ‘Submit Order’ or equivalent button, or perhaps enters their card details using an automatic phone answering service.
If the order is via a website, the customer’s web browser encrypts the information to be sent between the browser and the merchant’s webserver. This is done via SSL (Secure Socket Layer) encryption. Carding Authorization Tutorial
The merchant then forwards the transaction details to their payment gateway. This is another SSL encrypted connection to the payment server hosted by the payment gateway.
The payment gateway forwards the transaction information
The processor forwards the transaction information to the card association (i.e., Visa/MasterCard)
If an American Express or Discover Card was used, then the processor acts as the issuing bank and directly provides a response of approved or declined to the payment gateway.
Otherwise, the card association routes the transaction to the correct card issuing bank.
The credit card issuing bank receives the authorization request and sends a response back to the processor (via the same process as the request for authorization) with a response code. In addition to determining the fate of the payment, (i.e. approved or declined) the response code is used to define the reason why the transaction failed (such as insufficient funds, or bank link not available)
The processor forwards the response to the payment gateway.
The payment gateway receives the response,
1 The entire process typically takes 2-3 seconds
2 The merchant must then ship the product prior to being allowed to request to settle the transaction.
3 The merchant submits all their approved authorizations, in a “batch”, to their acquiring bank for settlement.
4 The acquiring bank deposits the total of the approved funds in to the merchant’s nominated account. This could be an account with the acquiring bank if the merchant does their banking with the same bank, or an account with another bank.
5 The entire process from authorization to settlement to funding typically takes 3 days.
There are many third-party payment gateways in the world today. I’m sure most of u are familiar with Paypal, WorldPay, Verepay, Authorize.Net, Click2Buy, SagePay, PPI.Inc, 2CheckOut, GoogleCheckout, YahooWallet, CCBill, MoneyBooker, etc… Carding Authorization Tutorial
The conslusion is the merchant can choose between using its own payment gateway to process the transaction directly to the merchant’s bank or using payment gateway from third-party payment gateway (with a “little fees” ofcourse).
0x0011 : All things about payment security Carding Authorization Tutorial Carding Authorization Tutorial
Since the customer is usually required to enter their personal details, such as :
– Last Name
– ZIP/postal code
– Telephone number
– Card type
– Card number
– Customer’s bank account (usually asked on Paypal, GoogleCheckout, YahooWallet when there’s a fraud detection)
– Start Date (not common)
– Expired Date
– Card holder name
Then, he/she might be thinking that this part is important to be really safe. Yes, to make customer feels safe while doing online transaction using credit card, the merchant has to provide a secure connection between the payment gateway to the merchant’s acquiring bank. This is to make sure that the data will not be intercepted by illegal guy on its way. On merchants (webshops) which are using theirs own payment gateway, usually the site use SSL (Secure Socket Layer) 128 ****, in an HTTPS site format. On the other hand, most of merchants are not using HTTPS for theirs website, but third-party payment gateway will do this for processing the transaction later.
Due to high volume of online credit card fraud transaction recently, many merchants start to aware about this. They do such procedures to avoid charge-back from the bank.
These are all things that merchant/webshop administrator will (usually) do to prevent credit card fraud :
– Check the buyer’s phone number with YellowPages/phone directory book
– Confront cardholder’s real location againts buyer’s IP address using GeoIP location tool
– If the shipping address differs with the billing address, then it might be suspicious order
– Shipping item to PO BOX usually not accepted by most merchant/webshop
1Order shipped to African, East Europe, Russia, and several Asia countries usually need to be confirmed via phone
2Order items in large volume sometimes be flagged as a high risk fraud
3Order items with urgency shipping time sometimes be flagged as a high risk fraud
While the payment processor gateway usually do check frequently count of the card being charged at the same payment processor gateway. The result will then be used to make a decision whether the transaction is going to be approved or declined.