How does online credit card processing work?

A credit card machine helps in assisting and dealing with businesses on-the-go and has taken ease and versatility to a new level. A card processing service has been smartly embraced by e-commerce and has provided utmost convenience for credit card users. This has also motivated business owners to opt for these services to carry out entire processes in the most efficient way.

Online payment processing can begin with a merchant account, which receives online credit card payments. A merchant account accommodates payments everyday and then they are transferred to the bank account of the company.

Here explaining credit card processing standard routine:

The consumers end their orders through the merchant’s online store. This should be carried on a secure web page. This is done so that consumer's personal information such as banking information (credit card or check) is encrypted, and can't be intercepted and read by third parties during online payment processing. It is recommended to use secure pages while handling credit card processing online.

The shopping cart program assembles the order information and compiles it into a form, which is accepted by the credit card processing company.

The shopping cart passes the formatted order via web host to the credit card processor (payment gateway). Received information is monitored by the credit card processor to ensure that order has all the necessary elements that are desired for processing the transaction. The next level is about determining company’s management of customer's credit card and passing the request for the charging the card.

Card and account is checked by customers’ credit card company for making sure about the accuracy. If everything is accurate and the credit card is cleared for purchasing then the company acknowledges it to the card processor about transferring the requested amount. If there is refusal by the Credit Card Company then code is transmitted back to the credit card processor accompanied with the problem.

The credit card processor now signals the shopping cart program about transactions success or failure. Likewise, shopping cart signals the customer about the order and sends order to merchant for delivery of the product or service. The credit card processor

begins a funds transfer or settlement request to the merchant account company for depositing into the merchant's bank account.

Internet merchant accounts gather the funds for assigned period of time by making scheduled transfers to the bank account of the merchant and then the online credit card processing transaction ends.

Online credit card processing is associated with several risks; hence it is essential to look for trustworthy and credible merchant accounts.