In the process of third-party payment transaction, the payment method makes it impossible for merchants to see the customer's credit card information, and at the same time avoids the theft of credit card information caused by repeated public dissemination of credit card information on the network. Take B2C transaction as an example: the first step, customers choose goods on e-commerce websites, and finally decide to buy them, and buyers and sellers reach a trading intention online; Step 2, the customer chooses to use a third party as a transaction intermediary, and the customer transfers the payment to the third party account with a credit card; Step 3, the third-party payment platform informs the merchant that the customer has paid and requires the merchant to deliver the goods within the specified time; Step 4, the merchant delivers the goods according to the order after receiving the notice; Step 5, the customer notifies the third party after receiving and inspecting the goods; Step 6, the third party transfers the payment from its account to the merchant account, and the transaction is completed.

As you can see, third-party payment has remarkable characteristics:

First, the third-party payment platform provides a series of application interface programs, integrates various bank card payment methods into one interface, and is responsible for docking with banks in transaction settlement, making online shopping faster and more convenient. Consumers and businesses do not need to open different accounts in different banks, which can help consumers reduce online shopping costs and help businesses reduce operating costs; At the same time, it can also help banks save the cost of gateway development and bring some potential profits to banks.

Second, compared with payment protocols such as SSL and SET, it is simpler and more acceptable to use the third-party payment platform for payment. SSL is a widely used security protocol, which only needs to verify the identity of the merchant. SET protocol is a mature technology based on credit card payment system. However, in SET, the identities of all parties need to be authenticated by CA, which has complicated procedures, numerous procedures, slow speed and high implementation cost. With the third-party payment platform, the negotiation between merchants and customers is completed by a third party, making online transactions easier.

Third, the third-party payment platform itself is attached to the large-scale portal website and depends on the credit of the bank it cooperates with, so the third-party payment platform can better break through the credit problem in online transactions and help promote the rapid development of e-commerce.