Fri. Feb 23rd, 2024

Things that we have to know about the card payments

The transaction through the credit card will initiate when the cardholder dipping and swipe the card for the payment at the merchant location when the card is swipe or dip then the merchant’s point of sale system will send the transaction request to the payment processor of the merchant’s account. The processor will automatically send the transaction request with the corresponded credit network. The network will send a message to the issuer where either it approves or declines that corresponds to the availability of funds.

This Take card payments system is the best option for all the transactions. The process of verification with the validation of credit card and also it balances the allowance on the credit line purchaser called authorization. The authorization approval takes the transaction to do forward, if the approval is declined then the transaction process will end right at that point so that the cardholder must go with some other option for the payment.

Reasons for transaction decline:

There are many reasons for the transaction to get decline that can include card missing, card stolen, the account does not under good standing, and low balance. If the referral message coming back then the merchant needs to call the issuer bank for the transaction process. Additionally, the decline message will include the pickup card and the held call were this usual response with the missing card. In the case where the issuer banks make the merchants want to take their cards from the customer. Other options are of two categories they are,

  • Expired card
  • Invalid account number

Some of the other causes can be the error will occur to one point this indicates that the processor is having some network issues with the equipment.

Once the payment is authorized without decline then the process will be divided into four sections, initially, the hold will occur on the customer or the card holder money then the issuer bank sends the approval message to the card networks, this sends the approval to the processor of merchant and this processor will send the approval to the merchant who sells the product. This whole process of collecting, arranging, and organizing the credit is called capture.

After all these stages the clearance and the settlement occur. Here, clearance is the method where the card issuer bank exchange the payment transaction processed information with the respected merchant to acquire the bank for funds. Another thing is the settlements in this buying and selling the transaction amount among all the involvers those are,

  • Merchants
  • Processors
  • Card issuing entity
  • Acquirers

This ends by transferring the related funds to the liability account. This is the common process that repeats to all the customers by the merchants. The major role of the card-issuing entity is to give good security to the customer. So that the third party will never try to mislead the card for that only the entity gives many security messages and information before the amount debited from the requested account. By these means and terms, one can simply understand and stop the debiting process from their account without the customer or the merchant’s knowledge. These are the information about the usages of the card.