Credit Card Processing Services

Behind the scene, there are several key contributing credit card services that are responsible for the processing of credit card applications and credit card payments.

The parties involved in the card processing services may vary from country to country but in general, you can expect at least four participants from the outset. These are the seller, the consumer - you, the issuer, and the acquirer.

Here's a brief insight into the less visible aspects of credit card applications and credit card payment processing machinery at work:

Key Contributors In Card Processing Services

The Merchant:   the store, business or service provider who accepts your card in payment

The Acquirer:   the credit card supplier, bank or other financial body that provide a processing credit card service to the store or merchant

Card Network:   a network of providers such as Visa or Mastercard etc,. that act as a gateway between the acquirer and issuer for authorising and funding transactions

The Issuer:   the financial body that issues cards, following successful credit card applications

Whether it involves applications for credit cards, or credit card payments, credit card processing services will necessitate a flow of information and money between all parties and is a significant feature of your credit card application.

Does it end there? No! There are further stages still. Assuming you have been successful with your application for credit card and you are now the proud owner of a card of credit, here's how the process work:

Credit Card Payment Processing

Any shop, store or business that accept credit card payments must use a credit card merchant service to process credit card payments. Today, you will find credit card processing machines or credit card payment services in almost every business, shop, store etc.,

When you make a purchase using your credit card, you sign an agreement to pay the card issuer. Along with a record of your credit card details, you further indicate your intention by submitting your credit card data and the amount to be repaid when you enter your PIN number.

The merchant or store then submit the transaction to the acquirer who has to instantly verify with the issuer that your card number and the amount of the transaction are both valid before it can be processed for you.

Once verified, details of your transaction is sent by the merchant or store to the acquirer, in order to obtain payment. The acquirer in turn send the transaction through the card network, which then debits the issuers for payment and credits the acquirer. The merchant receives payment, minus the fee paid to the acquirer for processing the transaction.

Web Sites That Accept Credit Card Payments Online

With the accelerated pace of growth of Internet shopping in particular, the ability to process credit card both on line and off line, has become a necessity rather than a mere convenience.

When you make a purchase using a credit card off line, the credit card is swiped through a credit card processing machine. For online credit card payments, you will be required to complete your credit card details on a form at the merchant's web site. A statement detailing your purchases will be sent to you and will indicate your outstanding balance as well as the minimum payment that you must make by a specific date.

The above is that part of the process we are all too familiar with. It is a good idea however, to understand the basics of what constitute credit card processing services. That is, what goes on behind the scene following your credit card credit application? And what happens once a credit card merchant accept credit card payments from you following your purchase transaction?

The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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