Various Steps Involved in Credit Card Processing

Today almost every payment happens via credit card transactions. Most people step out of their homes for shopping with their plastic cards that make payment s with a procedure as simple as a swipe.

With credit card shopping you are always ready to shop and do not have to carry sufficient money with you. There is practically no one who doesn’t use a credit card. If you are into any business, and are running a store, whether you do your business online or in a real shop you need be able to accept card transactions.

How does credit card processing happen and how does the money transaction happen? The process is very systematic. One you shop you can make your payment via credit card. The merchant simply swipes the card through the card machine. The machine reads the credit service and the bank whose client you are. The information read is transmitted to the authorized credit company as well as the bank. U can choose a debit account as well as credit cash payment according to the card you have.

Once your fund details are sorted, the transaction sum is typed and confirmed for payment to the merchant. In no time the signals are exchanged and the merchant receives the money through your bank to the merchants account. Besides, you also receive a notification and the details of the transaction.

An online transaction is similar to the aforesaid. Here the merchant should have a merchant account and also a payment gateway account. This makes a two way transaction. The steps are systematic and simple. You can shop online and make payments from home without worry.

Once you identify what you wish to shop, you can place order. The website asks for service your credit card has, and your card number. You need to type in the details of the card and the number in the assigned column.

One must be sure all the information given is on a reliable and secure online store. Once the details are fed in these are sent for processing. The payment gateway analyzes the details you have given and send it to you bank for withdrawing the sum of purchase and transferring to the merchant’s account. Once the payment is made, the merchant’s bank sends a received confirmation to confirm your money transfer. Since each step is done step by step, you can be slow and read, and recheck before sending any information, or deny if wrong.

Source by James Wissink

Ben Wills

I am a professional finance expert and business lover.

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