Edit Introduction: With the continuous development of the Internet industry, all industries are now developing towards the Internet. Internet payment has become very convenient, and users can directly shop and pay on e-commerce platforms; the author of this article shares an analysis of the overall payment structure, let’s learn about it together.
The top of China's payment system is the second-generation payment and clearing system of the People's Bank of China, and the top of the second-generation payment system is the clearing account center SAPS; the basis of payment is the account, and the account of the account is SAPS.
In order to better understand payment - we will trigger it from users and follow a payment to traverse the entire Internet payment network, and have a maximum macro perspective of payment!
1. God's Perspective
1. The best position to look at the problem
. Studying the God's Perspective Location of Humanity I think it is DNA double-stranded because of its origin; studying the God's Perspective Location of Researching Payment, I think it is here! Looking down at the entire Internet payment building!
2. The overall structure of Internet payment
1. Looking at the macro perspective of the problem
We layer the entire Internet payment in China according to participants:
Let us follow a payment transaction to travel to this building.
3. Internet user
1. Good experience makes users even more crazy
As one of the billions of Internet users, we are all the same! Pay for good service and fun products.
, since you have to pay, you need to pay; now the mobile Internet era and Internet payment are very mature, with a wide range of payment methods and payment applications; we can use WeChat, , Alipay, , bank cards, and password-free payment.
, 618 bought a book on JD.com with a recruitment credit card...
cashier, our first step in payment! Let’s go to
4. The first layer of Internet service platform
1. Good products make life more convenient
. JD.com shopping, Meituan order takeaway, Alipay transfer, where to buy air tickets to travel, good products make life more convenient; then we call this layer the Internet application layer, which directly provides users with services and payment capabilities.
These platforms provide users with various services, which are Internet applications directly for users; if users purchase services on the platform, the platform needs to have their own payment system to support payment business.
2. Payment architecture of the service platform
Just now we said that we bought a book from JD.com. So what is the payment architecture of JD.com! How did the money I paid for buying books just now flow?
picture from the Internet
After selecting the product and submitting the order, the platform completes the creation of the order in the order center, and the order completes the creation of the bill in the trading center; we operate to pay, and the transaction request payment is obtained to get the cashier link, and the order is given, and the order returns the cashier link to us. At this time, I chose to pay with a Merchant Credit Card, enter the payment password, and the payment was successful in an instant!
In fact, in the past few seconds, the entire payment chain has traveled through mountains and rivers, and has experienced thousands of dangers.
3. Payment architecture analysis
Let’s look at the above architecture diagram. For the payment architecture of a service platform, the relevant systems in the figure are generally composed of: a cashier that faces the user, a order system that records the business, a transaction system that promotes transactions, a payment system that processes payment instructions, and a payment channel subsystem of the payment instruction transmission channel.
In addition, there is also a line clearing and settlement line after the payment is successful: after the payment is successful, the transaction will submit the data to the clearing center to complete the data clearing calculation, and then submit it to the accounting system to complete the accounting; then notify the accounting core to complete the records of the internal account; finally notify the fund platform to settle the transaction to the merchant...
In this way, for a service platform, a payment skeleton will come out!
This shelf is the essence of my years of travel and study; it is basically suitable for Meituan, Qunar, Didi, etc. If you want to build a payment system from zero to one, then there is basically no problem with this planning.
OK Let’s continue to say that the payments of our payment merchants need to be connected to an payment institution . The payment system submits the payment request to the signed payment service provider through the payment channel. Let’s take three-party payment as an example, for example, JD.com submits the payment to online banking online ! So how do online banking handle it internally?
5. The second layer of three-party payment system
1. Good payment makes transactions safer
Payment institutions, as enterprises that have payment licenses and provide payment solutions for service platforms, also have their own complex and huge payment system. What we often hear about is various cash registers, payment products, payment routing, payment channels, payment core, accounting core, clearing core, risk control core, merchant network access, etc.
For payment institutions, innovation in payment products is crucial to meet the needs of the payment market. The innovation of payment products mainly focuses on the following dimensions:
2. Payment architecture of payment institutions
So for a payment institution, what is their payment architecture like? For example, the payment request just now reached the payment institution. How will this payment be transferred and processed in the payment institution?
We can see many architecture diagrams of payment institutions online. The slightly simpler architecture diagram above basically covers the basic capabilities that a payment institution should have; for example, the transaction layer processes transaction requests; the payment layer processes payment requests; the channel layer submits payment requests to the financial institution or clearing institution to complete the final clearing request instructions
Since it is all payments, we can change our thinking. In fact, the payment shelf of the payment institution is similar to the service platform shelf from some angles; it is just that one service user object is a user and a merchant, the payment channel is provided by a tripartite institution, and the other is provided by a bank
3. The payment institution architecture parses
. Let’s see after the payment request comes to the three-party payment institution....
The first threshold is to reach the gateway layer of the payment institution, pass the license through various risk control verifications, and come to the open platform. The open platform submits the payment request to the transaction processing layer for processing; first arrives at the order system, and after creating the order, request the payment system to obtain the cashier link and return to the open platform; open platform handles payment through the cashier request payment system for payment processing...
Payment Processing Center processes the payment request, selects the appropriate payment channel through the routing, and then encapsulates the payment instructions by the channel, and submits the clearing instructions to the clearing institution or bank through the payment channel.
After the clearing agency returns to the successful settlement, the payment processing center notifies the order center that the payment will be successful, and the order center submits the payment order to the clearing center for clearing and settlement processing, and completes the processing operations such as billing, accounting, and accounting.
so that our whole shelf comes out:
After rich and beautification, we get the most basic payment process architecture of a payment institution:
If you accidentally pick up a payment license, then take Teacher Chen’s picture and go to build your payment company; the payment institution submits the payment and clearing instructions to the settlement institution, because now is disconnected from direct connection to , and cannot directly connect to the bank; after disconnecting direct connection, the processing of payment and clearing in the UnionPay Internet is the same. Let’s take Network Connect as an example to see what will happen after the payment instructions arrive at Network Connect!
6, the third layer of online UnionPay clearing system
1. Good liquidation makes the market more harmonious
The author is fortunate to participate in the prosperous era of payment institutions being disconnected from direct connection to network connection, and participated in many online connection meetings, marveling at the liquidation structure after disconnecting from direct connection! ! !
Let’s first look at this picture to understand the relationship between these roles from a macro perspective:
In order to solve the hot account problems formed by the centralized custody of reserve fund and realize the management of mapped quotas, Network Connect will build the "Supply Fund Hot Account Pre-system" RCMP for payment institutions to handle business through the Network Connection Platform (EPCC). The pre-system is divided into a credit management module and an account management module. Network Connect will establish accounts for each payment institution in the pre-system for monitoring of available quotas and managing mapped quotas. After the instructions from the payment institution reached the Internet Connection, Internet Connection will conduct real-time clearing. What does it mean? It is to change the available balances in real time for payment instructions; we have said in detail about the articles of the Internet Union, so I will not introduce them here. Simply put, the payment institution maps the balance of the People's Bank of China and UnionPay to form a mapping virtual limit for real-time liquidation during the transaction cycle; and then submits it to the People's Bank of China for allocation and settlement of funds. This framework is as follows:
2. Clearing concept
In fact, after the direct connection is cut, the liquidation of the Internet UnionPay has become much simpler. Of course, when it comes to liquidation, we still need to talk about the liquidation structure of the old liquidation institution of UnionPay. Before liquidation, let’s start a small topic and introduce the more important concepts related to clearing and settlement.
Payment and settlement refers to the act of units and individuals using bills, credit cards and settlement methods such as exchange, collection and acceptance, and commissioned collection to make currency payment and funds clearing in social and economic activities. Banks are intermediaries for payment settlement and fund clearing.
Payment and clearing refers to the exchange and calculation of payment instructions; payment instructions refer to the fund transfer order issued by participants in paper, magnetic medium or electronic form to determine the amount; the exchange of payment instructions refers to providing a dedicated payment instruction transmission path for receiving, clearing and sending payment instructions; the calculation of payment instructions refers to the summary and difference of payment instructions; the participants refer to financial institutions and other institutions that accept the regulations of the payment and clearing organization and can send and receive payment instructions.
UnionPay’s payment and clearing includes two links: purity and fund allocation. Purity refers to the calculation of transaction principal and transaction fees (processing fees, distribution, etc.) for successful transactions recorded in the transaction log, and then summarizing the difference according to the liquidation object to form the amount receivable or payable.
In short, it is to figure out who should I ask for how much money today? Who should be given how much money? Fund allocation refers to the transfer of funds receivable and payable through specific channels and methods; in short, it is to clarify the channels through which receivables are received and payables are paid.
3. UnionPay’s liquidation structure
UnionPay’s payment and clearance includes cross-bank clearance and collection clearance - cross-bank clearance is for settlement of collection institutions and card issuing institutions; collection and clearance is for settlement of collection institutions for merchants and professional collection service institutions.
UnionPay clearing system mainly has three cores: cross-bank clearing subsystem, collection and settlement subsystem, and fund management platform.
4. UnionPay’s clearing relationship
clearing cannot be separated from one core, that is, the clearing account, and all payments and clearing are based on the account for accounting processing; the clearing account and the settlement account are not the same concept, and the difference between the two comes from the difference between [clearing] and [clearing].
UnionPay's domestic clearing accounts are all opened in People's Bank of China , cross-border business clearing accounts are opened in agency clearing banks (BOC and HSBC ), and domestic member institutions are all opened in the People's Bank of China; banks generally have reserve accounts in the People's Bank of China, and their reserve accounts are generally used for clearing with UnionPay.
The settlement accounts of domestic merchants are opened in commercial banks, and the settlement accounts of third-party institutions are opened in the People's Bank of China.
How does UnionPay allocate funds? Domestic interbank liquidation is completed through the central bank's large-value payment and clearing system to complete funds allocation. UnionPay can actively debit or credit the clearing account accounts of member institutions; in layman's terms, debit means I ask others for money, and credit means I give others money. Domestic collection and settlement can be used to transfer funds through the central bank's small payment and clearing system.
The relationship between UnionPay clearing system and the large-scale payment and clearing system. Whether it is cross-bank clearing or collection clearing, UnionPay is a franchise participant and joins the large-scale payment and clearing system to complete the allocation of funds for bank card exchange business.
UnionPay realizes two-way fund transfer with domestic member institutions through the large-value payment system ; UnionPay realizes one-way fund transfer with domestic third-party institutions and merchants through the small-value payment system and the local bill exchange system.
The relationship between UnionPay clearing system and bank settlement system. UnionPay and commercial banks are both participants and join the large-scale payment and settlement system to complete the allocation of funds across banks; the liquidation objects of UnionPay clearing system are member institutions, third-party institutions and direct-linked merchants. The settlement object of the commercial bank settlement system is the unit or individual that opens a deposit account in its own bank.
The liquidation account opened by UnionPay in the central bank should essentially be a reserve account; while the liquidation account opened by commercial banks in the central bank is divided into reserve account and reserve account. The reserve account is mainly used for supervision and use, which includes the legitimate rights and interests of depositors; the reserve account is mainly used for the management of its own fund positions.
The relationship between UnionPay clearing system and UnionPay accounting system. UnionPay clearing system handles the liquidation funds exchanged by bank cards. UnionPay accounting system processes UnionPay’s own funds, which include the balance of funds in UnionPay’s own liquidation account.
UnionPay accounting system is based on enterprise accounting standards, using the total account account, register account changes and fund transfer information. UnionPay clearing system only establishes ledger information for clearing funds.
5. Liquidation case
Let’s look at a liquidation case: Zhang San successfully swiped the card to shop for 1,000 yuan on June 1 with the China Merchants Bank credit card at Wumart Supermarket (directly connected merchant, ICBC acquiring orders). Li Si used the ICBC debit card to successfully pay a 200 yuan electricity bill on the payment terminal released by China CITIC Bank , and China CITIC Bank collected the bill.
Assume that the exchange fee for consumer transaction execution is 0.7%, the transfer fee is 0.1%; the exchange fee for payment transaction execution is 0.10 yuan, and the transfer fee is 0.05 yuan. The deduction rates of the acquiring bank and the merchant are actually 1% and 0.08% respectively (these two numbers are not used). For the sake of simplicity, the handling fees of the professional acquiring service institutions will not be calculated.
minus results:
6. General Clearing Institution Architecture
What kind of architecture will a clearing institution have? As everyone understands this more detailed structure, the above macro dimension is enough; although many friends from Internet UnionPay are from the community, I believe that most students will not go to such institutions, so it is enough to just take a look at it.
We know that Universal UnionPay will submit the settlement instructions of payment institutions to the People's Bank for the final allocation of funds to complete the actual delivery of funds between the participating entities; so before transferring the People's Bank of China, let's first look at the payment structure of the commercial bank connected to Universal UnionPay?
7, the fourth-level banking financial system
1. Good finance makes payment richer
Bank is equivalent to a service platform. Three-party payment institutions and clearing institutions such as Network Connect are very different. First of all, the business is different. In addition to the Internet payment channels provided by banks, there are stores, ATMs, bank cards, deposit services, loan services, financial management services, etc.
Let’s simplify it:
Putting aside the numerous other bank businesses, let’s look at the business structure of banks and Internet payments. Needless to say, I believe everyone has guessed that there will definitely be accounts, payment core, channels, and pre-systems.
Let’s look at a more macro one. For example, we can understand other channels in the figure as providing payment channels to Network Alliance UnionPay or payment companies, accessing the bank to make payment requests, and then the bank requests the bank to the bank.
is OK. Now we are going to have a pilgrimage to reach the top-level design of payment - the People's Bank of China's second-generation payment system!
8, the fifth layer of the People's Bank of China payment system
1. A good foundation makes payment more
We all know that the Chinese payment system has experienced the first-generation payment system and the second-generation payment system; it provides clearing infrastructure for the entire Chinese Internet payment; so how magical does this mysterious payment system have? Let's take a look at a very classic architecture: the Chinese clearing system. The most important part of
is the location of the Internet UnionPay and the tripartite payment institutions. The above is the part of the People's Bank of China we are going to talk about, and the following is the location of the commercial banks; among them, the payment and clearing system of the Internet UnionPay and the commercial banks are directly connected to the central bank.
Let’s look at the overall business shelf. The figure below is the picture. Each participant is connected to the NPC and is the National Processing Center, which includes a large-scale payment system and an online banking and Internet cross-bank payment system (super online banking). Then, the NPC submits the clearing account center (SAPS) to clear the funds after processing the payment instructions.
2. Several core systems
Let’s look at the most core systems of the second-generation payment system. You can also see from my full analysis directory of payment system. The People’s Bank of China will introduce each system in detail. Here we will just pass by, mainly to know a general idea.
takes the clearing account management system as the core, the large-value payment system, the small-value payment system, the check image exchange system, and the online banking interconnection subsystem are the business application subsystems, and the public management control system and the payment management information system are the support systems.
Let’s get to know these systems:
Clearing Account Management System (SAPS): It is the core system of the payment system. Through centralized storage and management of clearing accounts, it completes the funds clearing of various businesses of the payment system, and provides clearing services for the central bank to handle cash deposits and withdrawals, re-loans, rediscounts and other businesses; all banks, payment institutions, and Internet UnionPay will open clearing accounts here to clear funds.
large-value payment system, small-value payment system, online payment interbank clearing system is what we understand as payment system, accepts participants' clearing payment instructions, processes the instructions and submits them to the clearing account management system to complete the allocation of funds.
Payment Information Management System: It is an auxiliary support system for China's modern payment system. It consists of six subsystems: the line name line number management subsystem, parameter management subsystem, billing management subsystem, payment service statistical analysis subsystem, and payment service monitoring subsystem. It is a multi-functional module, centralized payment information sharing platform.
3. System operation control
The operation timing chart of each system:
Let’s take a look at how the operation between each system is controlled:
4. Payment and clearing processing
Then we look at the Internet Connection submits the settlement request to the People’s Bank of China payment system, and the payment system processes the instructions and submits the clearing account system to complete the final allocation of funds; it is at this time that the money from Teacher Chen’s book buys the money from the investment promotion agency to the online banking online reserve fund account.
At this point, we have made a macro understanding of the structure of participants on each floor of the entire payment building. Now do you already know what a long chain of payment will go through.
Finally, we spliced all the participant structures together to see this beautiful and luxurious payment building.
9. Aoyou Payment
We have introduced all payment participants, that is, the functions and architecture of each layer. So follow me to travel a magical journey of payment! Articles after
will gradually understand the detailed design explanation of each module and each system.
Author: Chen Xiaoguang; WeChat public account: Chen Xiaoguang; 10 years of product design experience, 4 years of social networking, 2 years of e-commerce, 5 years of payment; once worked in a leading finance and a leading payment institution; the founder of cloud reconciliation received tens of millions of financing.
This article was originally published by @Chen Tianyuzun and is a product manager. Reproduction of
is prohibited without permission from
. The title image is from Unsplash, based on CC0 protocol
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-