With more and more people shopping online there is a need for more and more people to establish credit card payment processing so their customers have the convenience of online pay. Credit card payment processing online is handled through a secure server to protect the account information of the cardholder.
During the authorization process the customer clicks on the checkout button so they can start the payment process. At this time the customer will be asked to provide their credit card number. They will also need to provide the date that the card is set to expire on. The billing address where the issuer of the card sends the monthly statement to will need to be provided. The CVV number from the back of the card will be asked for, and the amount of the purchase being made.
This information is transmitted to the financial institution that issued the card and at this time they will validate the card number and the date on which it is supposed to expire. The issuer will check the amount of funding available for the account and then check the purchase total to determine if there is enough funds to pay for the purchase. The issuer then looks to make certain that the billing address they have on file is the same as the one entered for this transaction. They also check to make certain the three digit code CVV shop matches the one they have on file for this card. If everything matches up, and there are sufficient funds in the account, the issuer will authorize the purchase to be finalized.
If the issuer declines the transaction the cardholder will be informed and asked to choose another means of paying for their order. If approved the authorization information will be stored so that the merchant can complete the processing at a later time.
When the merchant is ready to do their bookkeeping they will sign into the account they have established with their card payment processing service. The merchant will carefully review the amounts that they need to collect from the different card issuing agencies. Once they have all of their information in order they will authorize the third party company that handles their credit card payments to request payment from the card issuers.
The merchant does not receive the money they charged the customer immediately when they engage in these types of transactions. They do receive their funds much quicker than when they had to wait for the customer to mail them a check and then deposit the out of town check into their accounts. Once deposited the merchant would have had to wait a period of ten additional days before the check would clear and the money would be placed into their account.