Merchant credit card system- how it works?

 The term merchant processing involves collecting information on the transaction from the merchant, authorizing the sale, obtaining money from the bank issued using the credit card, and sending the payment across to the merchant. There are many merchant processing services in the market. However, choosing the right one according to your business needs is important.

At East Payments Solution, we provide 24*7 merchant processing services at the most competitive rates. Our service is tailor-made and best suited for small businesses. Our modern payment processors equipped with the latest technologies enhance overall customer experience, revolutionizing the payment processing industry.  

Merchant credit card system


Merchant credit card system- how it works?

Let’s look into the steps of merchant credit card processing system:

1.       Authorization:

·         On purchase of a good or service, the customer provides his credit card. The payment request can be placed through pos, credit card terminal or e-commerce payment gateway.

·         A request for authorization is sent to the payment processor by the merchant.

·         The payment processor then connects to the issuing bank.

·         CVV or a pin is entered to validate a transaction.

·         The issuing bank has the authority to accept/decline a payment. When the payment is accepted a receipt is printed by the in-built printer in the machine.

2.       Settlement and Funding:

·         Merchants send daily batches of transactions to the processors.

·         The payment processors relay transaction details to the concerned banks.

·         The concerned bank deducts the amount from the customer’s credit card.

·         The customer’s bank sends the appropriate funds to the merchant’s bank account.

 

Time period: The authorization process takes a few seconds. The settlement and funding process may take a few days. Thus, credit card transactions are fast, efficient, and offer the easiest solution for modern business.

Location: Rockville, MD, USA

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