The place of business that accepts the credit card is called the Merchant. In order to be able to accept credit cards, the Merchant must open a Merchant Account with a Merchant Bank which is also known as a Sponsoring Bank or an Acquiring Bank.
This is the bank that receives the Net Settlement Amount from the Issuing Bank after the transaction is processed. The Net Settlement Amount is the amount of the actual sale minus transaction fees called the Discount Rate. In some instances merchants may also have to pay Pass-through Fees which are additional transaction fees that are charged when a transaction does not meet some particular requirement such as passing the Address Verification System (AVS) test.
Credit Card Processing Steps
1.A transaction begins when the magnetic stripe on the back of the credit card is passed through a credit card terminal, or the credit card account number is entered into the system manually by either the merchant or the cardholder. This enters the transaction information into the Processors network.
2.An Authorization Request is generated.
3.The Processor links up with the Visa/MasterCard network in order to transmit...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
