How Does Credit Card Processing Take Place?

How Does Credit Card Processing Take Place?

There are three stages of credit card processing. In the first stage, the owner of the credit card scans his credit card and enters the amount to be paid. This initiates the second stage that is a request is initiated to the server to add the amount in debt of that person. In the last stage, the amount is added to his debt, and then this debt is sent to that person in the form of a bill, including the taxes and the charges on his transaction.

The Detailed Way Of How The Credit Card Is Processed:

Now let us look into this in a detailed way. Every credit card has a magnetic strip integrated into it. If the user is in the shop, then he is usually supposed to swipe the card or tap the card if the card is contactless. The other options through which we can pay from a credit card is through various apps and websites.

These apps ask you to enter your card number and some more additional details, and then you can make your payment through these apps, and the amount will get added to your debt amount. Now once the user has finished swapping or tapping the card, the microprocessor in the machine where the card was swapped processes the request and established the communication with the customer’s bank. Now it’s up to the customer’s bank whether to approve the transaction or disapprove it.

Does The Approval Depend On The Type Of Transaction Process?

Approval is dependent on various factors like whether the card is under expiry dates, whether the number of the card is valid (this is in the case where numbers are manually entered), whether the track record of the person is clear as far as debts are concerned, etc. The user’s bank accounts are charged in the form of bills at the end of the month. At the same time, several banks charge their customers at the end of the day itself.

Now, one should keep in mind that all these processes are happening over the internet. So any failure in the middle can give rise to many problems related to accounts and finance. For example, consider a general scenario in which a person performs one transaction and does not receive an acknowledgement, so he again performs a transaction for the same item. Due to this, the amount which will get added to his/her debt will be twice in comparison to the price of the item which he bought.

Thus nowadays many credit card companies have taken this thing into notice, and they ensure that the transaction is completed securely, and if the transaction process is not successful, then they ensure that the amount is only added to the user’s debt once the whole transaction process is completed securely.

If you want to enjoy a smooth and best credit card processing solution for your business, then you must fill the application form so that we can offer you the low-cost yet the best processing solution. To know more about how does credit card processing take place?, you can mail us at [email protected].

Suggested Reading

https://www.valuepenguin.com/credit-cards/statistics/usage-and-ownership