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https://github.com/cosybanana63/payment-gateway-diagram

This is a diagram of the processes involved when adding a payment gateway to your application
https://github.com/cosybanana63/payment-gateway-diagram

diagram logic payment-gateway

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This is a diagram of the processes involved when adding a payment gateway to your application

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# Payment Gateway Implementation

## Overview

This document provides a detailed explanation of the implementation of a payment gateway system from three perspectives: the client, the API provider, and the financial institution. The purpose of this system is to facilitate secure and efficient online transactions.

## Table of Contents

- [Client Perspective](#client-perspective)
- [API Provider Perspective](#api-provider-perspective)
- [Financial Institution Perspective](#financial-institution-perspective)
- [Sequence Diagram](#sequence-diagram)

## Client Perspective

The client (e.g., an e-commerce website) integrates with the payment gateway to enable users to make payments. The client handles user interactions and sends payment details to the payment gateway.

### Steps:

1. **User Initiates Payment**: The user selects products/services and initiates the payment process.
2. **Payment Details Submission**: The client collects payment details (e.g., card information) and sends them to the payment gateway.
3. **Payment Processing**: The client waits for the payment gateway to process the payment.
4. **Payment Confirmation**: The client receives the payment status from the payment gateway and notifies the user.

## API Provider Perspective

The API provider (payment gateway) is responsible for securely processing payment transactions between the client and the financial institution.

### Steps:

1. **Receive Payment Details**: The payment gateway receives payment details from the client.
2. **Validate Payment Information**: The gateway validates the payment information to ensure it's complete and correct.
3. **Forward Payment Request**: The gateway forwards the payment request to the financial institution.
4. **Receive Payment Status**: The gateway receives the payment status from the financial institution.
5. **Send Payment Status to Client**: The gateway sends the payment status back to the client.

## Financial Institution Perspective

The financial institution (e.g., bank) processes the payment request received from the payment gateway and updates the transaction status.

### Steps:

1. **Receive Payment Request**: The financial institution receives the payment request from the payment gateway.
2. **Process Payment**: The institution processes the payment by verifying the account details and availability of funds.
3. **Update Transaction Status**: The institution updates the transaction status (e.g., approved, declined).
4. **Send Status to Payment Gateway**: The institution sends the payment status back to the payment gateway.

## Sequence Diagram

```plaintext
User -> Client Application: Initiate Payment
Client Application -> Payment Gateway: Send Payment Details
Payment Gateway -> Financial Institution: Process Payment
Financial Institution -> Payment Gateway: Payment Status
Payment Gateway -> Client Application: Payment Status
Client Application -> User: Payment Confirmation
```
+---------------------+ +--------------------+ +------------------------+
| Client Application | <-----> | Payment Gateway | <----> | Financial Institution |
+---------------------+ +--------------------+ +------------------------+
| - User Interface | | - Payment API | | - Transaction Processor|
| - Payment Processor | | - Validation Logic | | - Account Verifier |
| | | - Transaction Handler| | |
+---------------------+ +--------------------+ +------------------------+

## Detailed Flow

### Client Application

* **Initiates payment** when the user decides to make a purchase.
* **Collects payment details** securely from the user.
* **Submits payment details** to the payment gateway.
* **Receives payment status** from the payment gateway.
* **Notifies the user** about the payment status.

### Payment Gateway

* **Receives payment details** from the client application.
* **Validates the payment information** for completeness and correctness.
* **Forwards the payment request** to the financial institution.
* **Receives the payment status** from the financial institution.
* **Sends the payment status** back to the client application.

### Financial Institution

* **Receives the payment request** from the payment gateway.
* **Processes the payment** by verifying account details and checking fund availability.
* **Updates the transaction status** (approved, declined, etc.).
* **Sends the payment status** back to the payment gateway.

## Conclusion

This document outlines the key components and interactions involved in implementing a payment gateway system. The sequence and component diagrams provide a clear visualization of the process flow and the relationships between different entities. By understanding these perspectives, you can effectively design and implement a secure and efficient payment gateway solution.