In an online age, consumer buying, selling, and exchanging products, services, or currency has been completely changed by online transactional behaviour. To know what an online transaction is, one must understand the activity of performing financial or business processes in cyberspace. Whether purchasing a product from an e-commerce website, transferring money to a friend, paying your utility bills, or subscribing to digital services, all these activities fall under the umbrella of online transactions. They facilitate us in making digital payments that can be made via a variety of gateways, such as credit/debit cards, UPI, website banking, mobile wallets, etc. An individual no longer needs physical money or visit a store or a bank in the physical world by of online transactions.
Online transactions are seamless, fast, and secure. By employing a mixture of encryption technologies and multi-factor authentication, they protect user information and funds. They have made financial processes more convenient and enabled globalization by connecting consumers and businesses worldwide. This comprehensive tutorial investigates the steps, stages, and key concepts, including transaction IDs, transaction status, and so on.
What is Online Transaction?
An online transactional is a cybernetic process, financial activities in which occur electronically in the sphere of the Internet. It is the movement of money, goods or services from one to another in a secure payment environment. It consists of the following steps: payment verification, fund transfer, and confirmation, so it is a developed and organized manner of carrying out financial activities. In contrast to cash transactions, internet transactions break down geographical and temporal constraints, enabling people to transact at any time and place.
Importance of Online Transactions
Online transactions are highly relevant as they industrialize monetary activity in a clear, safe and economical way.
- They enable companies to sell to the world and individuals to purchase, make payments, or transfer funds remotely without travelling to the location physically.
- The security furnished these days prevents the user from being a victim of fraud and records an extensive history of account transactions.
- Due to the contemporary pace of living, online transactions are the basis for e-commerce, online banking, and even personal financial management in the everyday lives of individuals.
Stages of Online Transaction
The online transaction process consists of three stages: pre-transaction, transaction, and post-transaction. Each step has its practical utility and an intrinsic value in guaranteeing the end of the process.
Stage 1. Pre-Transaction Stage
The pre-transaction phase refers to all the events before the payment is established. This step is essential as it is on a transaction basis. Customers look at and select products and give payment information.
At this stage, it is not unusual for end users to log in to e-commerce websites or mobile banking applications with user IDs and passwords (or similar secure login credentials). They consider various options and put items or services into a virtual shopping basket. After the selection has been finished, they select a method of payment. Payment modalities may vary, for example, in the form of debit cards/credit cards, UPI, internet banking, or mobile wallets. In this phase, users also verify discounts, coupons, or cashback promotions.
Stage 2. Transaction Stage
This stage is where the actual payment happens. It begins with entering the customer’s payment info during a subscription. The transaction phase is a set of critical steps to enable successful and secure remittances.
The process as a whole involves a payment gateway and a secure intermediary for the buyer and the seller. When the buyer enters payment information, the payment gateway encrypts the payment information and sends the information to the bank for validation. To confirm the transaction, the user must provide additional authentication (e.g., OTP (One-Time Password), fingerprint, or security code). The payment is executed after the bank or intermediary confirms the data.
For instance, when paying through a debit card, one has to input the card number, CVV, and OTP to finalize the purchase. When the payment steps are done, the payment gets processed from your bank account and goes into the seller’s account.
Stage 3. Post-Transaction Stage
After the payment is completed, the post-transaction phase of the flow of life is in charge of obtaining definitive records and confirmations. In this phase, the buyer receives a payment confirmation, usually in the form of an email or SMS. The seller is also notified when payment is successful and can finalize the sale.
In e-commerce purchases, this could be the updating of shipping and delivery. Customers can track the status of an order using the transaction ID provided in the confirmation. In addition, when there is a problem, such as incorrect inference or transaction failure, the present stage offers the users corresponding solutions.
Steps Involved in Online Transaction
Internet-based transaction processing is straightforward but is a sequence of operations that must be followed to implement security and correctness. Through such transactions, both buyer and seller can reach the conclusion of the transaction and the end of the transaction process without hassle.
Step 1: Account Creation or Log in
To complete the transaction, the user must have an account on the platform. For instance, when browsing the Internet, if you want a shopping experience online, you would request to register in advance, etc. Register for an account using your e-mail ID and your mobile number. When performing some banking tasks, logging into a web banking/mobile banking application is necessary.
Step 2: Selecting a Product or Service
You are choosing what you will be buying or using their services. In the case of e-commerce, a customer will pile up items into their basket that they chose to buy from the desired merchant. For services such as bill payment, you select a bill (e.g., electricity or water) and fill in the necessary information.
Step 3: Choose the Method of Payment
Following selection, you land on an advanced page for the payment. And here’s the screen on which you can choose from debit cards, credit cards, UPI, net banking, or even use any of the wallets such as Paytm or Google Pay. This is the usual task that users take to obtain cashback or coupons.
Step 4: Payment Authentication
This stage captures the payment information and validates the type of authorization transaction to be approved and the verified transaction. For a card transaction, a user must enter a card number, a CVV, and an expiry date. In the case of UPI payments, a UPI PIN is entered. The assurance made in terms of authentication in the process ensures that payment is authorized and security is assured.
Step 5: Payment Process
Payment details are scanned using all possible means before bank approval. The platform can process payments safely using payment gateways. This way, the funds in the buyer’s account will be settled and sent to the seller.
What is Transaction ID in Online Payment?
A transaction ID in online payment is a unique identifier assigned to every online financial transaction. It is a reference value used for monitoring, confirmation, and troubleshooting payments. Each transaction ID is individual, guaranteeing that each payment can be tracked.
The transaction identifier is typically an alphanumeric string generated automatically by the payment gateway or the bank during the transaction flow. For example, if you transfer money to a friend using net banking, you will receive a transaction ID like “TXN12345ABCDE.”.
Transaction ID is very important for both the buyer and the seller. They apply it as a confirmation of the payment status for their acquirers and for accounting and customer service purposes for their sellers.
Transaction ID Status Check Online
It is, however, crucial to verify your transaction’s status to be sure whether it went through or there was any problem. Users can easily trace their payment status using the transaction ID.
- Log in to the platform you used for the payment (i.e., e-commerce site or bank app).
- Navigate to the “Transaction History” or “Payment History” section.
- Enter the transaction ID provided during the payment process.
- Observe the transaction details and verify that the status is “Successful,” “Pending,” or “Failed.
What is Online Transaction FAQs
What is online transaction number?
It is the unique number assigned to an online transaction, also known as a transaction ID. It helps track and verify the payment.
What is transaction ID in online payment?
The transaction ID is a unique code that serves as proof of an online transaction and allows users to track the payment status.
How to activate SBI debit card for online transaction?
You can log in to SBI internet banking, “ATM Card Services” and activate the e-commerce facility at the point of debit card.
What is transaction ID status check online?
This is the procedure of confirming your payment status by using the transaction ID that was applied during the payment transaction.
How can I resolve a failed online transaction?
You could contact the support team of the payment platform, give them your transaction ID, and ask for help solving the problem.
