markopaul
New Member
Posts: 5
Status: Offline
Joined:
pm
| What are the steps of credit card processing? (4th Sep 23 at 12:55pm UTC)
Credit card processors indeed play a crucial role in facilitating electronic transactions between merchants and customer | | What is Credit Card Processor
Credit card processors indeed play a crucial role in facilitating electronic transactions between merchants and customers. They act as intermediaries, securely transmitting transaction data between the various parties involved, including the merchant, the card networks, and the issuing bank.
Credit card processors offer essential services beyond transaction processing, such as fraud detection to help identify and prevent fraudulent transactions, chargeback handling to manage disputes between merchants and customers, and reporting to provide merchants with insights into their transaction activity and financial performance.
The fees charged by credit card processors vary based on factors such as transaction volume, average transaction value, industry, and the level of risk associated with the merchant's business. Common fee structures include a percentage of the transaction amount (known as the discount rate) and a per-transaction fee. Some processors may also charge additional fees for specific services or circumstances, such as chargebacks or international transactions.
As you mentioned, the specific processes and parties involved in credit card processing can vary based on the payment network, country, and agreements between the parties. Different payment networks like Visa, Mastercard, American Express, and others may have their own specific procedures, but the general flow you described is common across most credit card transactions.
Overall, credit card processors play a vital role in enabling seamless and secure electronic payments, making it easier for businesses to accept credit and debit card payments, and providing customers with a convenient and widely accepted payment method.
How does credit card processing work?
Credit card processing is a complex system that allows businesses to accept and process payments made with credit cards. Here is a simplified explanation of "how credit card processing typically works":
Customer initiates payment: The customer provides their credit card information (card number, expiration date, and CVV code) to the merchant during a purchase.
Merchant's point-of-sale (POS) system: The merchant enters the customer's payment information into their POS system, which may be a physical terminal or "an online payment gateway".
Authorization request: The merchant's system sends an authorization request to the credit card network (e.g., Visa, Mastercard, American Express) or "the merchant's payment processor". The request includes the transaction amount, merchant identification, and the customer's card details.
Credit card network or payment processor: The authorization request is forwarded to the customer's credit card issuer (the bank or financial institution that issued the card) through the credit card network or "payment processor".
Card issuer response: The card issuer receives the authorization request, verifies the customer's account details, and checks if there are sufficient funds available to cover the transaction. They also perform security checks to ensure the transaction is not fraudulent. Once the checks are completed, the issuer sends an authorization code or decline response back to the merchant's system.
Authorization response: The merchant's system receives the response from the card issuer. If the response is an authorization code, it means the transaction is approved. If the response is a decline, the transaction is rejected.
Completion of the transaction: If the transaction is approved, the merchant can proceed to complete the sale. The customer's card is charged, and the merchant provides the goods or services to the customer. For online transactions, the "payment gateway" securely captures the customer's funds.
Payment Processor
Accepting payment online
Online payment processors
Best Credit card processing
Merchant processing
Credit card processor
Merchant account in UK
2ds Payment Processing For Casino
Offshore Credit Card Processing
adult payment processing
| |
|
:: 
:: 
:: 
:: 
