How The Card Payment Processing Works During An Online Purchase

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As many users do the online transactions for the purchase and payments of bills and for many other reasons. The proper working has been done by the various merchant companies with the help of associated banks and processors. The process of the card payment processing has been categorized into the two main phases during the online transactions.

The authorization is the first phase in the processing of card payments. This authorization process, the approval is done with the respective transaction. This authorization is done by the store for the online shopping itself. The second phase of the processing of the card payments is Settlement. In this phase, the sale or purchase has been processed by the associated banks. These banks help in assisting the transfer of the purchase amount from the cardholder’s account to the store’s account.

The steps included in various phases of the card payment processing

There are various steps have to be followed by the phases of the card payment processing. These are described below:

Process of authorization

This authorization process of card payment processing has been done in various different steps. Firstly, when the person wants to buy or purchase any type of product, he has to visit the online store. When the selection of the products or order has been done, the buyer has to click on the tab of sending an order. When the click on the tab of sending order has been made, the request for the authorization is sent to FDMS automatically. FDMS is the processor which is looking for the payment. After this, the request has been forwarded to the associated bank. The authorization request includes the card number of the user or buyer, valid date or expiry date, billing address, amount of the order and CVV number. On receiving this information, the bank performs the verification of these credentials. If the filled credentials match with the original credentials, it moves to the next step for the card payment processing. If it does not match with the original credentials, the buyer has to adopt some different payment modes. If the confirmation will be received from the buyer, it reaches to the next page that is the order confirmation page.

Process of Settlement

In this settlement process for card payment processing, the only two steps are taken into account. The first step of the settlement process is that the merchant company has to sign into their account, then the page goes directly to the Order Manager page. After this, the revision of placing an order has been made and also the verification of the required AVS and CVV codes has been processed. After this, if the merchant company wants to have the acceptance of the placed order, they have to click on the tab of the Capture fund. Whenever they follow these steps, the payment of the credit cards has been initiated by the bank. After this initiation process, the required amount of placing the order has been transferred from the buyer’s account to the merchant store’s bank account.

This is all about the working of the card payment processing.

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