Everyone use credit card, but does anyone know the complete procedure behind it. How the money get transfers from your account to the merchants account within fraction of seconds?
Credit cards are the most convenient innovations in the financial industries. It offers an opportunity to the consumer to buy the products and pay later. The consumer can also experience better and hassle free purchasing power. Moreover, the consumer can easily withstand emergencies by providing the ability to purchase anything required urgently. Credit cards also offer different types of advantages. One can enjoy discounts at particular stores or companies.
However, a business cannot easily accept a credit card. It needs merchant online services to accept electronic payment. The merchant service providers play a vital role in connecting the merchant to the banks. For that you need to understand the credit can processing. It is a simple procedure, yet many finds it complicated, as it is complex to understand where the money goes, after how many days one receives the payment, etc.
How Does Credit Card Processing Work?
1) Customer pays– customer makes payment with his/her credit card.
2) Payment gateway– credit card information sent to payment processor through payment gateway.
3) Processor – payment processor sends transaction details to CC Network.
4) CC Network– CC Network approves/declines and sends back to payment processor.
5) Processor– Payment processor confirms payment approval and sends transaction to merchant.
6) Merchant Site– On payment approval confirmation, merchant ship the goods to the customers. Merchant receives the money in their bank account within 2 to 4 working days.
These simple and easy steps can help you understand the procedure. Online business can opt for merchant accounts for websites. There are many companies, which provide best services so that the merchant can accept payment without any hassle. Find the right service provider and start accepting payment online as well as on store with electronic cards.
Read More : Get Started with Merchants Revives Today