Card Payment Basics

In today’s marketplace, merchants are faced with a complex set of terminology and conflicting information when they look to set-up their payment processing options.

From the most complex integrated solution to a standalone POS terminal, all card payments follow the same simple steps.

How a Payment Card Transaction Works:

1. A cardholder purchases goods or services from a merchant.
2. The merchant sends the transaction information to an Acquirer (Merchant Bank) and is reimbursed for the
   sale less a discount rate.
3. The Acquirer submits the transaction to the Issuing Bank for payment by either the Visa or MasterCard
   settlement system.
4. The Issuer pays the Acquirer for the purchase through the settlement system
5. The cardholder repays the Issuer for the goods or services originally purchased from the merchant.Below illustrates the process flow of a typical credit card transaction.

Today’s customers demand payment flexibility

Customer Satisfaction
• How
• Where
• When they want.

Electronic Transactions save time and money by:
• Reduce clerical mistakes by automating manual store procedures
• Provide better customer service
• Speed up checkout lines
• Increase cash flow and higher profits
• Automating manual store procedures
• Speeding checkout lines
• Providing better customer service
• Increasing cash flow
• Offering higher profits

Whether it’s by debit or credit card or a specialty product, happy customers will be loyal customers.