Two Types of Credit Card Processing
The most common way of paying on the internet today is by the use of credit card.Some of us may get confused by knowing just how credit processing works.
When a retail store cashier swipes your credit card thru credit card terminal, the following process takes place: credit card and payment details are sent electronically to merchant’s acquiring bank, which contacts credit card issuing bank; in case transaction is approved, funds are deposited on the merchant’s account.
Online credit card processing in ecommerce adheres to the same processing steps, except the physical credit card terminal that swipes your card in a retail store is replaced by payment gateway; a merchant needs to have this type of account as well as a merchants account to enable a service that processes online payments in a secure way.
The most common way of paying on the internet today is by the use of credit card.Some of us may get confused by knowing just how credit processing works.
When a retail store cashier swipes your credit card thru credit card terminal, the following process takes place: credit card and payment details are sent electronically to merchant’s acquiring bank, which contacts credit card issuing bank; in case transaction is approved, funds are deposited on the merchant’s account.
Online credit card processing in ecommerce adheres to the same processing steps, except the physical credit card terminal that swipes your card in a retail store is replaced by payment gateway; a merchant needs to have this type of account as well as a merchants account to enable a service that processes online payments in a secure way.
