How Credit Card Processing Works

How Exactly Does Credit Card Processing Work?

Many people think that credit card processing is a complicated process and, to be honest, we can’t blame them. From conflicting information online to complicated contracts and service agreements there’s a lot of confusion about how exactly credit card processing works and why it’s important. In this post, we’re going to break down the key steps that happen when you swipe a card or enter a credit card number so that it’s easy to know what’s happening behind the scenes. 1. A purchase begins Whether it’s a CNP (card-not-present) transaction, where a merchant enters a credit card number by hand, or one where a credit card is swiped, at the moment it happens, a transaction has started! The information enters the system and then … 2. The information is moved to the processor Once the card information is entered (online, by phone or swiped in person), the information gets sent…

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