Payment Service and Fraud Detection

Our goal in this lesson is to highlight the need for securing the system against malicious activities. We will discuss fraudulent activities in the context of payment. We will first briefly discuss how payment system works, and then how to guard against malicious activity.

Payment service deals with the payments side of the Uber application, including collecting payment from the rider to giving it to the driver. As the trip completes, it will collect the trip information, including travel time, distance, etc., calculate the cost of the journey, and initiate the payment process.

Major functionality

The Uber payments platform includes the following functionality:

• New payment options: Adding new payment options for users.
• Authorization: AuthorizingIn a payment service, authorization is a process to verify the payment method, e.g., whether a certain credit card is valid or not. the payments for transactions.
• Refund: Refunding a payment that was authorized before.
• Charging: Moving money from a user account to Uber.

What to prevent

Following are the things that need to be prevented for the success of the payment system:

• Lack of payment
• Duplicate payments
• Incorrect payment
• Incorrect currency conversion
• Dangling authorization

The Uber payment platform is based on the double-entry bookkeepingDouble-entry bookkeeping, also known as, double-entry accounting, is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. Every entry to an account requires a corresponding and opposite entry to a different account. Source: Wikipedia method.

Design

Let’s look at the design of the Uber ...