Credit Card Payment Process

1. Making the Purchase. 

The client reveals a product that he or she likes and makes a decision to make the purchase. The client can use a credit card to pay for the item in the store, thru a web price gateway, by way of phone or by means of mail.

2. Entering the Transaction. 

The credit score card is swiped via a comfy credit card terminal, or the card and transaction records is entered in. For e-commerce transactions, the cardholder keys within the payment alternative.

3. Transmitting the Data. 

The credit score card records is transmitted for approval because the terminal, POS system or comfortable payment gateway is attached to the processing network.

4. Approve or Decline. 

Once the data is transmitted, the credit score card company can approve or decline the transaction. This is primarily based at the validity of the card, the transaction, as well as the cardholder’s to be had price range.

5. Responding. 

If the transaction is accepted, the processor and the merchant receive an authorization reaction.

6. Completing the Transaction. 

The merchant completes the transaction.

7. Submitting a Batch Closure. 

The service provider completes the credit card payment technique on the stop of the day with a batch closure. This closes out the transactions that have been processed on that day. The processor’s obtaining bank then collects the budget from the credit card issuers.

8. Depositing the Funds. 

The processor’s obtaining financial institution then deposits the funds into the service provider’s commercial enterprise account. This generally takes as much as 48 hours.