How Websites Process Credit Cards

The process of making a sale through your website and its internet merchant account is a lot more complicated than it looks on the surface. Many steps are required:

The first step occurs when the customer enters your online store and begins making a purchase, by adding items to the shopping cart.

During the next step, the information required to process the order is gathered from your customer via an online form. This includes credit card information, shipping data and product information.

The payment gateway now sends that order to the processing company. That company will double check the information you’ve sent, see which company the customer’s card is with, and then send a request for money.

This request is transmitted to the customer’s credit card company (issuer). Once they’ve validated the card and account, they’ll verify that the funds for the request are present. As long as everything is in order, this company sends information back to the processing company and lets them know that the funds are there to be transferred. If a problem occurs, then the card-owning company also lets your processing company know what it was.

In step five, the credit card processing company relays information back to your shopping cart via the payment gateway to let it know whether or not the order can be completed. It also notifies the customer whether or not the order has gone through, and lets you know if you can ship your goods.

Despite the complexity of the process, all of the above takes place within a matter of seconds. Shortly afterward, the processing company starts a process called the “funds capture”, by which the money will be sent from the customer’s credit card account to your checking account (the one associated with your internet merchant account). When your bank account receives the funds, a settlement occurs. At this point, the transaction has finally been completed.

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Most merchants are unaware that interchange rates are adjusted as much as 2x per year. Over the course of several years, those adjustments can hike up a merchant’s rate and cost the merchant thousands in processing fees. Contact us via the form above, or call us today at 888-383-8056. Chances are, we can save you up to 25% over your existing rates and fees!

Why do businesses choose to work with The Transaction Group? 

  • We aim for 100% customer satisfaction. We understand that the customer comes first. At the end of the day, if the customer is not happy, we’re not happy.
  • We offer a FREE rate analysis to every business. In most cases, we can save a business up to 25% on existing rates and fees. But if we can’t beat a customer’s rate, we’re upfront from the start. We don’t waste the customer’s time.
  • We are reliable and always available. If a customer has any concerns, we’re available even after business hours. We’ll address any issues immediately.
  • We don’t believe in one-size-fits-all.We provide solutions based on the specific requirements of each and every business. What’s best for one small business may not work for another.
  • We have a fast & easy setup process. In most cases, we offer a fast and easy approval and set up. While some high risk businesses can have longer underwriting times, we keep the customer informed throughout the process and work for fast approvals.
  • We have solutions for every business type. From low-risk card-present credit card processing solutions to payment processing solutions for high risk e-commerce stores, we’ve got it all.

Let’s Work Together.

At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

Let’s Work Together.

At The Transaction Group, customer satisfaction is our priority. Allow us to show you what we can do for you.

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