How Credit Card Processing Works

How Credit Card Processing Works

There is no certainty of someone to know how credit card processing works. However, a general knowledge that will obtain from reading. This post will be a good idea for a business owner so that he/she can have a better understanding of how this process works. We will be going into detail about how credit card processing works. It will be explained as basically as possible so that you will be able to at least know what a credit card processing company does. For a better understanding of the process, you will need to know the key roles in the processing system. So without further ado, let’s start with the key roles.

How Credit Card Processing Works: Key Roles

The CardHolder

The cardholder is the most important key role in the processing of a credit card. The cardholder is the person who obtains a credit or debit card from an issuing bank, he/she uses this card to buy products or services. 

The Merchant

The Merchant is the business who sells the product or service to the cardholder. Most probably you are a business owner searching for how credit card processing works. So if this is the case the merchant is your business who accepts credit cards.

A Merchant Bank 

A merchant bank establishes and holds merchant accounts. The merchant bank allows deposits for the merchant this way the merchant can accept credit and debit card payments.

Credit Card Payment Processing Company

Credit card payment processing companies are companies that enable merchants to accept credit card transactions. Payment processors connect merchants, merchant banks, card networks, and others to make card payments possible. While most credit card processing companies take huge amounts of fees, PcBancard takes almost no fees at all. If you are a merchant then you should check out PcBancard for more information.

Now that you have a general understanding of the key roles that are available, it will be easier for us to talk about the process. The way how credit card processing works is like this; 

A cardholder comes to your business for goods or services and if they find something that they are interested in they want to purchase that good or service. Now you as the merchant(business owner) present your customer the privilege of purchasing with a credit card. When the cardholder purchases with the credit card, the credit card processing company that you are contracted with, establishes the network through your company and the merchant bank and transfers the money of the cardholder to your merchant bank.

We hope that this read on how credit card processing works has been useful. If you interest in finding a great credit card processing company then check out PcBancard. If you have any questions about the services of PcBancard do not hesitate to contact the amazing team that will be always happy to help you with your questions.

powered by Typeform