- The merchant submits a credit card transaction to the Payment Gateway on behalf of a customer via secure connection from a Web site, at retail, from a MOTO center or a wireless device.
- Payment Gateway receives the secure transaction information and passes it via a secure connection to the Merchant Bank’s Processor.
- The Merchant Bank’s Processor submits the transaction to the Credit Card Interchange (a network of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions).
- The Credit Card Interchange routes the transaction to the customer’s Credit Card Issuer.
- The Credit Card Issuer approves or declines the transaction based on the customer’s available funds and passes the transaction results, and if approved, the appropriate funds, back through the Credit Card Interchange.
- The Credit Card Interchange relays the transaction results to the Merchant Bank’s Processor.
- The Merchant Bank’s Processor relays the transaction results to Payment Gateway.
- Payment Gateway stores the transaction results and sends them to the customer and/or the merchant. This communication process averages three seconds or less.
- The Credit Card Interchange passes the appropriate funds for the transaction to the Merchant’s Bank, which then deposits funds into the merchant’s bank account. The funds are typically deposited into your primary bank account within two to four business days.