How Credit Card Processing Works?
Credit Card Processing takes place in the following manner:
- Step1: The customer completes their transaction by using a credit or debit card.
- Step2: Credit Card information is captured by merchant.
- Step3: MGI credits merchant account and submits transaction for settlement upon approval by card issuing bank.
- Step4: Bank end processor debits the card issuer account as the acquirer; transaction is sent to issuer.
- Step5: Merchant account is funded by acquirer.
- Step6: Transaction is posted by the issuer to the customer’s account.
- Step7: Customer receives statement and pays the issuing bank.