Credit Card Transaction Process


Credit Card Transaction Process Diagram

Avoid Overpaying Fees Associated With Each Step In The Process!

The credit card transaction process, as described in the chart above, can be very complex and involve multiple entities. From the merchant’s point of view, the most important aspects are the approval of the credit card transaction amount and the deposit of funds in the merchant account when all charges are settled. Along the way, data may be sent back and forth to an authorization network, credit card association (Visa, MasterCard, Discover, American Express), and the issuing bank. At every step, fraud prevention software and other security measures are in place to catch suspicious charges and buying patterns.

Because so many parties are involved in the transaction process, there are also quite a few fees that accumulate, including interchange fees and association fees that are fixed by brands like Visa and MasterCard. If you are currently processing credit cards through a bank or third party, Capital Processing Network can review your merchant statement and find savings on most aspects of the transaction process. While every entity in the merchant account authorization process needs to be compensated for its services, Capital Processing Network can make sense of the myriad of fees in order to assure that you are not paying an excessive markup.