Merchant Acquiring and the Card Payment Processing
- February 19th, 2012
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The use of credit cards for paying online is already widespread. Many consumers patronize online shopping that is why the number of people transacting with their credit cards online are also numerous. In knowing how card payments are processed, we need to know first about other processes involved merchant acquiring. This is done by an acquirer or acquiring bank. It is the process of maintaining merchant relationships as well as facilitating the acceptance of bank card payments. In paying for a purchase in an online store, the customer orders then types his credit card number. The details in the shopping cart, together with the merchant account, are forwarded to the payment gateway for processing. The transaction details are now forwarded to the acquirer then to the issuing bank for verification purposes. After verifying, the issuing bank sends the approval or denial back to the acquirer. The response is sent back to the payment gateway then to the online store. So now, the payment information is displayed telling the customer if the credit card was charged or not.
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