How Credit Card Processing Works - 7 Step

How Credit Card Processing Works - Basically, the process of credit card transactions feels simple: Customers just need to swipe their cards, and before they know it, the transaction is done. But, in the ease of it there is a very complicated procedure than the one that meets the eye. In fact, the whole process that only happens in a few seconds - involves many stages and some actors working behind the scenes.

Today a network of bank cards carrying billions of transactions between merchants, processors, and banks is truly a modern marvel. Counting in seconds, the transaction information is passed to your terminal or software to the processor, and then through the card network to the issuing bank for approval. The issuing bank then sends the authorization back through the card network to your processor before it finally ends back in your terminal or software.

Here are 7 stages how the credit card processing work

1.Customer gives/submits his credit card for payment.

2. Manage the complex routing of data on behalf of the merchant through the following steps/entities.

3 .Prove secure transaction information through a secure connection to Processor.

The Merchant Bank processor sends transactions to the credit card network (such as Visa or MasterCard). Furthermore, the credit card network will forward the transaction to the bank issuing the credit card to the customer.

4. The issuing bank will approve or reject the transaction based on the customer's funds and forward the transaction result back to the credit card network.

The credit card network sends the transaction result to the bank merchant processor. The processor sends the transaction result to Authorize.Net.

5. Save the results of the transaction and send it to the website so that customers and merchants can see it.

6. Then Merchants will begin delivering goods or services to the buyer.

7. Unknowingly the buyer and seller The issuing bank will send the appropriate funds for transactions to the credit card network, which hand over the funds to the merchant bank.

The bank then deposits the funds into the merchant bank account. This is called 'settlement', and usually, transaction funds are deposited into the merchant's primary bank account within two to four business days.

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