About Credit Card Processing
The entire
payment processing process takes a mere 2-3 seconds. This is pretty
amazing when you consider all the individual transactions which must
occur to complete the entire process.
1) Customer uses their credit card to aquire products or services from
a Merchant (Business)
2) Credit Card is either swiped or entered manually into a credit card
terminal (credit card reader)
3) Credit Card Terminal Sends the Credit Card Data securely
(encryption) to the Payment Gateway.
4) The Payment Gateway forwards the credit card data to both the
payment processor and the Card Association (e.g. Visa/Mastercard)
5) The Card Association routes the credit card information to the bank
which issued the credit card.
6) The Card is either accepted or declined and the appropriate code
(result) is sent to the payment processor.
7) Payment Processor (merchant account) forwards the results to the
payment gateway and card reader.
8) Transaction is complete.
*see
illustration below
Credit Card Processing: The
Actual Process.
Illustration of
transactions between customer, merchant, credit card terminal, payment
gateway, payment processor, card association, card issuer.
*Note: For American
Express and Discover transactions the process is
different. Transactions using an American Express or Discover Credit
Card the payment processor serves as the issuing bank and replies to
the payment gateway transaction accepted or declined.
*see
illustration below
For
the Customer, the amount of funds processed will appear on their
statement.
For
the Merchant (Business) the process continues. The Merchant (Business)
will then submit their approved authorizations "batch" to thier bank
for settlement. The bank will deposit the approved funds into their
account. From Authorization to funding takes about three days.
If you are
interested in Accepting Credit Cards and have any questions. Contact
Merchant Warehouse. Merchant
Warehouse specializes in
merchant accounts, and we guarantees the lowest cost on credit card
machines, credit card processing and merchant accounts. Visit their site Merchant
Warehouse or call toll free. They have in-house support and can
answer any questions you may have 886-421-4158
