4 Steps to Show the Process of Credit Card Payment Processing

2022-09-10 09:54:13 By : Mr. Shidou Teng

The majority of people don’t think about the intricacies of electronic payments, as most of them are not needed. But automated payment systems like any other system is prone to technical glitches, human error, and malicious outsider attacks.  

Fremont, CA: There are five major parties to a typical electronic card transaction , the buyer, merchant, acquirer, issuer, and network or association, who play an essential part in the automated payment system. 

Smooth execution of the credit card payment process is essential, so here is a step by step overview of a successful transaction.

The authorization process determines that the buyer has sufficient funds at hand before touching their credit limit to complete a transaction. As a result, this reduces the risk of merchant handing over goods for which a buyer is unable to pay. Hence authorization confirms that the customers have enough money or credit to purchase the requested service or product. 

With the completion of authorization, the merchant gives the requested goods or services, and the customer has no role to play in the process any further. But the transaction is not yet finished, and the merchant electronically stores the payment information for every authorized sale throughout the business day. In the end, the batch is sent to the acquirer, and he keeps it temporarily in its own secure, electronic system. As the acquirers have many individual merchant clients, multiple batches are stored according to their own needs. 

See Also: Top Payment and card Service Companies

Post getting the merchants batch in hand, the acquirer can now begin the clearing process. It is a fun part for the intermediaries as they finally get paid. 

Also known as the final step in the transaction process, finance is the part where the merchant receives funding for the transaction. 

Although the traditional electronic card transaction is authorized and the customer goes out of the picture in seconds, this four-step process might sometimes take many business days to complete. It can also take a month or even longer for the customers to be able to pay the issuing bank.

Top Payments and Card Solution Companies

Prime Payment Solution: Simple and Cost-Effective Merchant Payment Processing

Whistle Systems: Understanding What Moves the Needle

National Merchants Association: Payment Processing Done Right

Verituity: Delivering Faster, Safer, Verified Payouts

i-payout: An Omni-Channel Global Payout Solution

Vcita: Clearing the Path of Digitalization for Small Businesses

Total Pay LLC: Quick and Frictionless Payment Processing

nCourt: Intuitive Payment Model to Digitize the Public Sector

Versapay: Streamlining and Optimizing B2B Transactions

Franchise Payments Network: One-stop-shop for all Electronic Payment Needs in the Franchise Industry

New West Technologies: En Route to Seamless Transactions

Payzer: Comprehensive Payment Processing Platform

RentMoola: Rent’s Due, Now What? Disruptive Company Rises to the Challenge

Payway: Pioneering Innovations in the Subscriptions Economy

Total Pay Solutions: Quick and Frictionless Payment Processing

AffiniPay: Customized Payment Solutions for Unique Industry Needs

NewNet Communication Technologies: When Building Castles on Clouds Turns into a Reality

HintMD: Bringing Payment Innovation to the Aesthetics Industry

Payzer: The All-In-One Financial Tool

Electronic Merchant Systems: Progressive POS Solutions for SMB Merchants

PayFlex: Innovating Payment Processes for Financial and Health Wellness

vPromos: Optimizing Loyalty with Card-Linking

TRG: One‐Stop Shop for AIDC, POS, and Payment Processing Solutions

BBPOS: mPOS Solutions for Today's Needs and Tomorrow's Challenges

RentMoola: Facilitating Seamless Rental Payments and Rewards

Singular Payments: End-to-End Payment Processing

Motionsoft: Fully Managed Payment Processing for the Fitness Industry

NIC Inc. [NASDAQ:EGOV]: The Go-To Payment Expert for Government Agencies

Member Access Pacific (MAP): The Comprehensive Card Processing Program

Galileo Processing: Addressing Tomorrow’s Payments Challenges Today

Riverside Payments: Delivering Seamless Payment Enablement

NMI: Redefining Omni-channel Payment Processing

ECHO Health: Revolutionizing Payment Solutions for Healthcare Payers

RenovITe: Systems for 21st Century Payments Processing

Intelligent Contacts: Helping CIOs move the needle in 30 days

SnapCheck: Crossing the Digital Divide in Business Payments

Sekure Merchant Solutions: Secure and Optimized Payment Processing

BillingTree: Creating Omni-Channel Payment Experiences

Matica Technologies: The Card Issuance Pioneer

FCTI: Transforming ATMs into Banking Channels

Computop: Enabling Global Payments Processing

One, Inc.: Leader in Digital Engagement and Payment Solutions for the Insurance Industry

Digitzs: Making Payments Painless for Platforms

PEX: The "Bank in a Box" System

Connected.co: Merchant Services for High-Risk Businesses

Essential Technology Elements Necessary To Enable...

By Leni Kaufman, VP & CIO, Newport News Shipbuilding

Comparative Data Among Physician Peers

By George Evans, CIO, Singing River Health System

Monitoring Technologies Without Human Intervention

By John Kamin, EVP and CIO, Old National Bancorp

Unlocking the Value of Connected Cars

By Elliot Garbus, VP-IoT Solutions Group & GM-Automotive...

Digital Innovation Giving Rise to New Capabilities

By Gregory Morrison, SVP & CIO, Cox Enterprises

Staying Connected to Organizational Priorities is Vital...

By Alberto Ruocco, CIO, American Electric Power

Comprehensible Distribution of Training and Information...

By Sam Lamonica, CIO & VP Information Systems, Rosendin...

The Current Focus is On Comprehensive Solutions

By Sergey Cherkasov, CIO, PhosAgro

Big Data Analytics and Its Impact on the Supply Chain

By Pascal Becotte, MD-Global Supply Chain Practice for the...

Technology's Impact on Field Services

By Stephen Caulfield, Executive Director, Global Field...

Carmax, the Automobile Business with IT at the Core

By Shamim Mohammad, SVP & CIO, CarMax

The CIO's role in rethinking the scope of EPM for...

By Ronald Seymore, Managing Director, Enterprise Performance...

Driving Insurance Agent Productivity with Mobile and Big...

By Brad Bodell, SVP and CIO, CNO Financial Group, Inc.

Transformative Impact On The IT Landscape

By Jim Whitehurst, CEO, Red Hat

Get Ready for an IT Renaissance: Brought to You by Big...

By Clark Golestani, EVP and CIO, Merck

Four Initiatives Driving ECM Innovation

By Scott Craig, Vice President of Product Marketing, Lexmark...

Technology to Leverage and Enable

By Dave Kipe, SVP, Global Operations, Scholastic Inc.

Speed is the Name of the Game

By Meerah Rajavel, CIO, Forcepoint

AI is the New UI-AI + UX + DesignOps

By Amit Bahree, Executive, Global Technology and Innovation,...

Evolving Role of the CIO - Enabling Business Execution...

By Greg Tacchetti, CIO, State Auto Insurance

I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

Copyright © 2022 CIOReview. All rights reserved.         Contact         |         Subscribe         |         Advertise with us        |         Sitemap         Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy Policy       |       Disclaimer

However, if you would like to share the information in this article, you may use the link below:

https://www.cioreview.com/news/4-steps-to-show-the-process-of-credit-card-payment-processing-nid-30687-cid-171.html