What is an online payment API ?
A payment API (Application Programming Interface) is an interface that connects your website or application to banking systems and your payment service provider.
In practical terms, you benefit from the payment functionalities available in the API, without needing to develop or maintain them. These payment APIs allow you to accept various payment methods (such as credit cards, Apple Pay, Google Pay, etc.), while ensuring transaction security.
The API manages the entire payment process, from authorization to the actual transfer of funds, integrating ancillary services such as strong authentication (PSD2), anti-fraud modules or operational automations.
How does an online payment API work ?
When a customer makes a purchase on your platform, the online payment API transmits the information to the bank or payment provider. The transaction is analyzed, validated, and then confirmed in real time.
Here are the main steps :
- Initiation of payment : the customer selects a product or service, chooses the payment method and confirms their purchase.
- Data transmission: Payment information is sent to the payer’s bank.
- Payment validation : the bank verifies the data and ensures the availability of funds.
- Payment authorization: when the transaction is authorized, the amount is either transferred to the seller’s account or blocked on the customer’s account in the case of deferred payment.
- Payment confirmation : The online payment API transmits the confirmation to the platform and the customer.
The entire process takes place in seconds to provide a smooth and frictionless payment experience.
Online payment API : key components
Online payment APIs vary from one provider to another. However, they all rely on three fundamental elements :
- Authentication : Payment requests must be validated to prevent fraud. APIs use keys or tokens to ensure transaction security.
- Payment processing : This step ensures the secure transmission of information between the customer, the merchant, and the banks. When the customer enters their card details, the API encrypts the data and transmits it to the card network, such as Visa or Mastercard. Within seconds, the payment is authorized and validated.
- Error handling : APIs return specific error codes in case of a problem (example: error 402 for a declined payment). This type of message allows platforms to quickly diagnose incidents.
A well-configured payment API facilitates the purchasing process, secures transactions, and helps increase conversions while building customer loyalty.
The various online payment APIs
There are several online payment APIs depending on the payment methods you wish to offer on your platform :
- Credit card API : allows you to accept card payments. The API usually includes tokenization, which allows you to replace card numbers with identifiers for added security.
- Wallet API : allows you to accept Apple Pay, Google Pay, or PayPal. These APIs facilitate the integration of these payment methods and offer customers fast payment in seconds.
- Transfer APIs: These facilitate account-to-account payments, such as bank transfers or direct debits. They are particularly used for B2B transactions or large amounts.
The advantages of a modular online payment API
Modular online payment APIs adapt to the specific needs of each business. They allow you to activate only the necessary features and to evolve the solution at the same pace as the platform.
Depending on usage patterns, it is possible to gradually add new payment methods or options. These also allow for adaptation to constantly evolving regulations.
This approach offers more flexibility, simplifies technical integration and allows for optimization of the payment process without a complete system overhaul.
The CentralPay payment API
CentralPay is a modular platform designed for professionals looking to collect payments, regardless of their business model: e-commerce, marketplace, traditional business… It relies on an “API-First” infrastructure, designed to easily integrate with all systems and technologies, as well as to automate payment flows, according to your business needs.
CentralPay’s online payment APIs allow you to accept a wide range of payment methods: bank card, instant or SEPA transfer, direct debit, Pay by Bank…
For marketplaces, the API facilitates collection on behalf of third parties and the automation of payments to sellers, while managing the centralization of funds and commission rules.
The platform is based on robust technology that complies with European standards, ensuring the protection of data and transactions. It therefore allows for the management of complex payments, the automation of financial processes, while offering a smoother experience.
