How does credit card processing work? -

The entire credit card processing experience is designed to bring the user a very good experience and a very good value. The idea here is to know the type of results you expect and how these can affect you. As long as you know how to approach all of this, you will see that results can indeed be second to none. When it comes to credit card processing, you need to go through a few steps. Even if they are simple, they are also mandatory, so you have to keep them in mind.

The first thing you have to do is to complete the transaction at the merchant point of sale. This is the start of the entire process, so it’s an action that has to be completed in order to get the desired results. Thankfully, this is not time consuming and in the end it won’t require that much time to begin with. You just have to know how to approach the situation firsthand. The POS system will share the transaction, merchant and card bank info towards the gateway.


How does credit card processing work?



The experience

After all of that is complete, the payment gateway will collect all the merchant, card and transaction data from the gateway and it will share all of this with the linked payment processor. The idea here is that you will not have to do any of this. The entire thing is performed in the background, so the experience on its own is simple and nothing short of interesting right off the bat.

Once this is done, you will see that the payment processor now has all the data. It will collect that gateway data and it will then go to identify the association and network according to the character type. The processor will then have to route all the transaction data to the network.

Transaction info

At this point, the network will have all the information, so it has to collect all the transaction info. It will then have to verify all the balance with the card issuer. This means it will do a balance check, not to mention that the network will do a security check. Such a thing is needed in order to make sure that the card is in the regular spending patterns.

If the card is ok and all is good, the transaction will pass the security check and it will be approved by the card issuer. This is when the network will share an affirmative response to the POS System and the card issuer. During the settlement process, you will find that the network will collect all the transaction data and then it will share it to the merchant account.

Moreover, the card issuer has to check the current balance and then pass the entire verified amount to the network. This has to happen during the settlement process.

The final step

The final step will happen when the merchant bank gets all the transaction value minus the potential fees that come from the processor, network and the gateway.

That’s it, now the process is complete. As you can see, the credit card processing is not that hard as you may imagine. It does have its own set of interesting benefits, but in the end it’s just a delightful, unique experience. The great thing here is that you never have to worry too much about it. This delivers a very good value for your money and the outcome is indeed a very good one. If you believe that you want to make the most out of credit card processing, then read this and you will see how everything works and what may need any improvement!


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