Payment Flow

We try our very best to make transactions as easy and effortless as possible, but sometimes it’s helpful to know the steps each transaction goes through. Every time a customer enters their card details on your website, this information travels through a number of different parties. This page explains who these parties are and how the information and funds flow across the whole system.

Flow of information

  1. When your customer is ready to pay, they enter their card details on your website. Then you pass this information securely to FMPay through our API connection.
  2. We in turn send this information to a card network (Visa/Mastercard/UPI).
  3. The network connects to the issuing banks and asks for permission to charge the cardholder. The issuing bank checks if there are sufficient funds on the account and whether the transaction looks suspicious. If everything is fine, the bank grants approval.
  4. If you have 3D Secure activated, the cardholder will have to pass additional checks to authorise the payment. Using 3D Secure is highly recommended and in some cases legally required.
  5. Once the cardholder is authenticated, the issuing bank gives its final approval to the card network. We receive this and communicate it to you.
  6. At this stage the funds remain frozen on the cardholder’s account, and won’t move until you are ready to charge the customer, when you send us a “charge” request which goes through the same chain of communication back to the issuing bank.

The flow of funds is very similar to the flow of information.

  1. FMPay collects all “charge” requests throughout the day and submits all of them simultaneously to the card networks. This process happens automatically, so you don’t have to do anything.
  2. The card networks collect your funds from all the issuing banks whose customers you have charged and send these funds, minus interchange and other fees, to FMPay.
  3. You know exactly how much you are going to receive for each transaction from the time of authorisation. Depending on the agreement, we transfer funds to your bank account on a scheduled date (such as every other business day).

If you have questions about these requirements or need some help, email us at info@fmpay.co.uk.