Understanding The truth Of Card Payment Processing

Plastic payment solution; this is the phrase coined in order to explain the utility of a credit card. Payment have become more convenient with the credit cards. It also increases the sales and also open up the payment options for the customers. There is need to carry cash, all that is needed is just a credit card. Something which should be understood is how all this works. There are various phases involved in the Card payment processing.

Steps Involved

The first step in Card payment processing is the authorization. During the commencing of authorization process the customer clicks on the checkout button after which the payment starts. After that the credit card number is asked along with the date of expiry of the card. The billing address is required for sending the statements by post. The CVV number printed on the back side of the card is to be entered after that and lastly the amount.

The information is transmitted to the bank or the issuing institution of the card and a validation check is carried out on several grounds. First the card number and the date on which the card is supposed to expire is tallied. Then whether an ample fund is present in the account or not is checked. Then the billing address provided is matched with the one which is already fed into the system against the credit card number. Then the CVV code is checked which is very important as the three digit code is matched with the servers’ file records and is checked whether the card is a genuine or a fake. It is the mark of authentication in the whole Card payment processing. After that the issuer authorizes and finalizes the purchase.

Merchants Role

Now the job of merchant comes. When the merchant is ready to review the whole process of purchase, he/she needs to login to the account which is configured with the card payment processing service. After viewing all the details and the amount collected from card issuing agencies they pass the details to the third-party company which tackles the payment issues and request for the payment from the card issuing institution.

The merchant does not receive the money as soon as the process is complete. There is a span of two to thirty days involved in order for the merchant to receive the cash. They do receive their funds much quicker than when they had to wait for the customer to mail them a check and then deposit the out of town check into their accounts.

Impacts

The revenues involved with the use of credit cards are also huge and the revenue touches a jaw dropping 200 billion dollar mark. This helps the business to climb the ladders of the success with a little more speed as the whole business cycle is fastened. As more and more people are leaning towards online shopping the companies providing credit card payment processing are also increasing. This compels the existing providers to enhance their services and in turn the consumers are the ones who are benefited. The whole payment procedure is handled online via the internet through a secure centralized server which also protects all the account information of the card holder.