The system of credit card processing is unclear. Players are numerous and the process is complex. To understand how everything works, it helps to understand the types of businesses that are involved, and how much money they normally charge to process a transaction.
For a typical credit card transaction e-commerce, a number of participants play a key role in the process. Those players are:
- Payment Gateway
- Processor Acquiring
- The exchange of credit card
- Customer’s credit card
- Merchant’s acquiring bank.
Follow The Money
Let’s say you buy$ 100 credit cards. By the time the customer makes the buy button on the merchant’s website e-commerce, which targets through cyberspace on a multi-stop trip, during which you will be shed, usually, almost three dollars as companies evaluate you interact with different fees for their services. (Actual rates vary according to the number of variables, including the type of card type, merchant, and risk factors.)
His first assignment is the payment gateway (.11 ¢), which routes it to the appropriate processor (-.09 ¢). The processor immediately undergoing what is known as the credit card interchange (-.10 ¢). After you have cleaned the exchange, the next leg leads to the issuing bank (-1.94 ¢), which verifies the funds available in the account of the customer’s credit card.
If you are approved or rejected, now begin the journey back to the client. However, if you are approved, you and your authorization results are soon to part after speeding every stop he made along the way. Diversion is through your merchant account the acquiring bank (-.66 ¢) to, ultimately, the merchant’s bank account, which will be deposited; that is, the $ 97.16 of you that remains.
To understand the process of paying a working knowledge of the participants and the services they provide is needed in the way. Tracking a hypothetical transaction throughout the payment processing system is also suggested. Thus, e-commerce operators can understand not only what services these companies offer participants, but also what fees they charge to process a transaction.