Basic Mercantile process model for any transaction online business:



1)  Buyer contact vender to purchase product, through WWW, Email, Telephone etc.

2)  Vender states price

3)  Buyer and vender may or may not engage in negotiation.

4)  If satisfy, a buyer authorized payment to the vendor with an encrypted transaction for the

agreed price.

5)  Vendor contacts his or her billing service to verify the encrypted authorization for authentication.

6)  Billing service decrypts authorization and check buyer’s account balance and put hold on the amount of transfer

7)  Billing service gives the vendor the ‘green light’ to deliver products and sends a standardize message giving details of transactions for merchants records.

8)  On notification of adequate funds to cover financial transactions, vendor delivers the goods to


9)  On receiving the goods the buyers signs and delivers receipt. Vendor tells billing service to complete the transactions.

10)All the end of billing cycle, buyer receive a transactions.


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  1. 2 months ago

    Thank you.

    Youseful blog. Good post.

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