How does credit card processing work?

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How it Works

Customer makes a purchase by swiping or entering a card.

Customer’s acquiring bank receives the transaction request.

Acquiring bank sends the request to the card brand issuer (ie: Visa, Mastercard)

Issuer approves or declines the transaction » communicates the results to customer’s bank » acquiring bank approves or declines the transaction.

Merchant receives payment for customer’s purchase.

Happy customer enjoys a new purchase!