img
Address: Your address goes here. Call Us: 0123456789, 0123456789 Email: demo@example.com
logo Address: Your address goes here. Call Us: 0123456789, 0123456789 Email: demo@example.com

Shopping Cart

Subtotal: $170.00

Wishlist

img

May 2022- by Muhammad Nashit

How Credit Card Processing Works.

Are you looking to incorporate Credit Card Processing into your business model? You must be familiar with the complete process flow. Let’s have a look at how it works.

1. Authorization
  • A cardholder gives you a credit card to make payments.
  • Being a merchant, your terminal will send a request to the payment processor for payment authorization.
  • The payment processor will contact the issuing bank using a credit card machine (with CVV, card expiry, and AVS validation) to submit transactions.
  • The issuing bank sends approved/declined status to the card association and then the merchant bank. In the end, the merchant receives this status.
2. Settlement
  • Being a merchant, your terminal will send multiple authorized transactions to the payment processor.
  • The details are transferred to the card association to communicate with issuing banks.
  • The cardholder will pay transaction charges
3. Funding
  • Once transaction charges are deducted, the issuing bank will deduct interchange fees and will transfer the desired amount of funds to the merchant bank.
  • Then, your merchant account will receive funds from the merchant bank.

This is how, in just a few steps, credit card processing improves the way you facilitate your customers/clients.