Payment Processing

Curious about what happens in the background when you perform a transaction?
Take a look at the diagram to the right and follow the step-by-step guide below.

1. SWIPE / KEY
   When a customer swipes or provides his/her credit card, the merchant's processor receives the transaction information.
2. VALIDATION
   The processor validates the information and connects to the appropriate card brand network.
3. AUTHORIZATION
   The card network contacts the customer's bank to authorize the transaction and to make sure that sufficient funds are available.
4. APPROVAL
   The customer's bank sends back an approval, which is forwarded back to the processor; and finally displayed to the merchant.

Frequently Asked Questions

Do customers see the transaction on their statement immediately after the transaction?

No. Although a real-time authorization occurs during the transaction, the customer will not see a charge on their credit card until a settlement (also known as a batch-close) is performed at the end of the day.

Why can't I sign up directly with Visa and MasterCard for a merchant account?

Visa and MasterCard act as associations and do not provide services directly to consumers or merchants. In order to accept credit cards, you need to sign up with a processor. This also applies when obtaining a credit card, since you cannot go to Visa or MasterCard directly but instead go to an issuing bank.

What's an issuing bank?

An issuing bank is a Visa or MasterCard member bank that issues credit cards to customers.