UK Credit Card Processing: A Complete Solution To Card Payments

1. UK Credit Card Processing: A Complete Solution To Card Payments With time, shopping for products and accepting payments has become simpler. These days, the customers need not fetch cash from their wallets. All that is needed is a credit card. Credit card processing companies have made running a business easier. A credit card processor handles all the intricacies involved with credit card payments and ensures simple and quick checkouts. If you are new to it all, we understand the confusion. And in this article, we are going to talk about credit card processing. Before we get into the details of how a credit card transaction works, it would be better if you understand the parties involved in the process. Client The client is the credit card holder Merchant Merchant is the business owner who sells the goods or services Issuing bank The issuing bank is the customer’s bank that issues the credit card Acquiring bank Acquiring bank is the one that provides merchant services to the business Payment processor A payment processor is one of the merchant services. It is responsible for processing online payments. Card association Card association dictates the rules and regulations for the card issued to the customer. It also ensures that the online credit card processor completes the process in time. Here is how credit card processing works After the credit card is swiped by the customer, a request is sent to the processing company. The issuing bank is informed via the card network. The request is either approved or denied by the bank. After the approval, the information is further sent to the payment gateway The information is then sent to the acquiring bank The funds are then transferred to the merchant account. We hope you now have a basic idea about how credit card processing works.