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Credit Card Transaction Processing

The credit card transaction processing includes two main types of processing systems. Namely, merchant account and third party credit card transaction processing. Transaction processing system is different in both the systems. The transaction fees also differ in both these systems. Mentioned below is the step-by-step process of a credit card transaction processing system.

The first processing system i.e. credit card transaction processing in a Merchant account is a type of transaction processing wherein the money is processed directly by a merchant account’s providing bank.

* Your client should enter all the necessary information required through a secure form on your internet website.

* Using the SSL-encrypted technology this information can be encrypted.

* This encrypted data is then passed on to the credit card transaction processing gateway

* The gateway then decrypts the encrypted data using a SSL certificate

* The accuracy of this information is then verified by the credit card transaction processing gateway.

* The verified information is again encrypted by the SSL technology and then passed on towards a credit card transaction processing bank.

* The bank then transfers the amount to the merchant account from the client’s credit card.

Another type of credit card transaction processing is the credit card transaction processing through third party. In this system the money has to be transferred to the bank from a third party credit card transaction processing firm. This system is basically used in cases where obtaining a merchant account is difficult because of the hard guidelines set by the bank’s and the policies laid by the credit card transaction processing.

* Your client should enter all the necessary information required through a secure form on your internet website.

* Using the SSL-encrypted technology this information can be encrypted.

* This encrypted data is then passed on to the credit card transaction processing group

* The third party credit card transaction processing then transfers this data towards bank’s gateway.

* This credit card transaction processing gateway then verifies the provided information and passes it to a bank

* The money is then transferred to third party credit card transaction processing group from the bank.

* Finally the third party credit card transaction processing group transfers the mentioned amount to the third party merchant’s account.

* Payouts are made by means of checks, PayPal, bank transfers etc.

It now depends on the business owner on what type of credit card transaction processing they choose, which of above mentioned is available or probably suitable for the business.

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