It is all too easy to assume that apart from you, the credit card
applicant or card holder, there is very little other involvement
in processing credit cards, other than the credit card merchant
and the issuer.
Yet, if we think carefully about what is involved, you get an
inkling as to all the various credit card service providers and the
many pieces of equipment being used; some of which include:Credit card processing equipment (to encript credit card)
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
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
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
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