Online Credit Card processing is basically the engine behind every transaction that happens on each merchant account. Whether you are running an ecommerce store, you have a subscription-based platform, or you operate in any other industry, for you it is important to understand how it works.
With online Credit Card processing your customers enter the card details on your website, and within just a fraction of a second, the funds are authorised to be moved into your merchant account.
| Step | What Happens | Handled By |
|---|---|---|
| 1. Enter Details | Customer types card info on checkout page | Customer / Website |
| 2. Send Securely | Info is encrypted and sent to processor | Payment Gateway |
| 3. Bank Checks | Bank approves or declines the payment | Bank / Card Network |
| 4. Show Result | Site shows success or error message | Website / Processor |
| 5. Settle Funds | Money moves to the merchant’s bank account | Processor / Acquirer |
Your customer visits your website and enters the credit card information at the checkout page, where the customer submits the card number, expiry date, card verification value, and name on the card. Sometimes the customer may also be asked to submit the billing zip code or postal code if the merchant is using AVS checks.
Entire data is encrypted and securely passed through a PCI complaint payment gateway. The gateway takes the encrypted data and sends it to your payment processor, which then routes it through the relevant card network; it can be visa MasterCard, American Express, or any other. The processor’s job is to ensure that the data flows to the correct card issuer.
The card-issuing bank checks if the credit card is valid and whether the cardholder has enough credit line or balance on the account. If the transaction appears legitimate and the account has a credit line of funds, then the card issuer approves the transaction.
If the transaction is approved, then the customer receives the order confirmation, and the merchant receives the order approval information; if it is declined, then both receive responses accordingly.
When the transaction is approved, then the gateway authorises the amount held on the customer’s account. In most cases the actual settlement of funds to the merchant account usually happens in batches within 1-3 business days.
The entire process happens in real time and relies on precision, security, and full compliance. A single weak point, like an unreliable gateway or poorly integrated system, can cause abandoned carts, failed transactions, and fraud.
That is why it is extremely important for merchants to work with reliable providers such as QuadraPay that work with a large number of verified acquiring partners across the globe. With our solutions merchants can get high-risk merchant accounts and offshore payment gateways as well as domestic processing solutions.
We offer a fully integrated, highly secure credit card processing solution for industries that are generally considered risky, such as CBD, adult, vape, gaming, supplements, and more.