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Core of Payment Processing Engine (Payment Hub)

Updated: Jul 5, 2021

Definition : Payment Processing /Payment Hub:

Any system which securely deals with incoming or outgoing payment transactions originated by party (company or individual) or financial institution for facilitating routing and validation / anti-financial checks / book keeping / currency conversion and disbursing to proper clearing and settlement channel.

To understand payment hub process one would require to understand the Payment life cycle and different methods of payments used in domestic and international remittances.

Payment processing engine types in market :

There are various processing engines are available in market Global PayPlus (Finestra) , TPH (Temenos) , All Payments (CGI) , Global Alto , Intellijent , Oracle Finance , Finacle , ECSFIN etc which are used as full payment mode or part payment mode depending upon different processors present in a payment flow or payment life cycle.

There is a difference between Payment Gateway and Payment Processor , one is just a medium to acquirer payment from merchant and lead to proper processing engine and Payment processor is actual engine which process payment and helps in routing to proper clearing /settlement system.

Payment processing services and activities :

A payment processor is used for many processes which collectively gives end to end solution to an payment networking system or financial institution (FI) or a firm handling technical processing for FIs . Below are the services it provides :

  1. Accepting payment from different sources /clients #clients #incomings

  2. Routing to correct processing mechanism or different other engines

  3. Payment workflow management based on Method of payment /scheme /Country or Area. #workflow #MOP #scheme

  4. Anti-Financial Checks like AML , Anti Terrorism funding , Blacklist check #financialchecks

  5. Advising

  6. Business analytics

  7. Charging and Billing

  8. Booking keeping or Posting and Ledger updating

  9. Data warehousing scheduled payments

  10. Status update for transactions

  11. Financial messaging to clearing or other processing systems over network established. #MTMX #swift

- Payment entities / portals or portal types

Do you know different Method of Payments and Formats used ?

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