Credit Card Processing

Credit card is the small piece of plastic that is used for the purpose of paying money on the promise means little later for buying different kinds of things. Many people consider it feasible and safe option to keep credit card with them instead of cash. While using credit card have you ever think that what is the credit card processing? In fact a whole process of authentication and verification is run behind using the credit card. This processing is usually done in the form of four steps. These steps are listed as authorization, batching, clearing and funding, different kinds of entities are involved in this process. These entities are card holder himself, merchant, acquirer and issuer.

Now what happen is that the process is started when card holder place the request for any kind of goods to the merchant. On the submission of request from the card holder merchant place the request towards the acquirer. Then request is sent by the acquirer to the issuer for checking authentication of transaction. If credit card is valid then authentication code is sent to the acquirer as confirmation. Then further in the credit card processing that code is used for authorization of process with the merchant. When merchant gets the authorization then that process is completed and card holder receives the product. The use of credit has become quite common in various regions of world. In USA every year 23 billion cards are processed. Various credit card companies are present for this purpose like Visa card, Master card etc.