Credit Card Processing

Many people in today’s world are using the credit card for their daily routine life transaction. They find it feasible option instead of keeping cash in their pockets. As many bad things can happen while carrying cash with you. People usually seem to be interested in giving the payment by some sort of card instead of having cash directly. Now many people seem to be quite interested in the in knowing about the credit card processing details. The details of processing can be explained in four steps and those steps are authorization, batching, clearing and funding. Actors are also involved in this process and these actors are card holder, merchant, acquirer and issuer. Every entity fulfills its role according to the domain area.

The whole processing starts when a user uses a credit card for buying something. Card holder places the request for the use of his card. That request is received by the merchant and then merchant has the duty to forward that request further to the acquirer. When acquirer receives the request, what he does is that he sent the request further to the issuer. When issuer found that card is valid and nothing is wring then issuer sends a message in the form of code back to the acquirer. Acquirer then sends the message to the merchant. Upon receiving that message merchant give confirmation to the card holder and the process of processing is completed. This is the process that is followed in credit card processing. All people are quite restricted to the use of credit card.