62+ Easy Tips How Does Credit Card Processing Work. The card processor forwards the transaction information to the credit card network, which passes it to the cardholder’s bank. The cardholder will enter one’s data into an online shopping cart program for online. The acquiring bank checks with the. Your pos system collects the necessary information, then sends them to your.
The cardholder provides one’s card to the merchant. Funding (aka settlement) the funding (or settlement) step in card processing is when businesses get the money from a credit card sale deposited into their account. Merchants send the transactions to their respective payment processors.
The cycle begins and ends at the merchant’s point of sale, where the transaction is initiated.
Merchants send the transactions to their respective payment processors. Now that you have an idea of the many parties involved in credit card processing, here’s a breakdown of how the process works: The card processor forwards the transaction information to the credit card network, which passes it to the cardholder’s bank.
Magstripe Cards Are Swiped Horizontally Through The Credit Card Reader.
Acquiring bank routes the transaction.
