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 Step 1: Consumer Gives Payment to Merchant
The first step involved in a transaction is the acceptance of credit card
information by a merchant as a means of payment for products or services.
The merchant can receive this
payment through such methods as an Online Store, ePayment Form, Wireless
Retail via Mobile Phone, Retail via Software, Retail via IP Terminal or
Mail/Telephone Order via Virtual Terminal. |
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Step 2: Merchant Requests Authorization of Card
Once the merchant receives the credit card, an authorization must be
given for the funds to be properly held for the merchant. This
authorization request is performed by the USA ePay gateway which takes the card
information securely and requests an authorization from the
issuing bank of the credit card. |
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Step 3: Issuing Bank Gives Authorization of Card
If the card is approved, the credit card's issuing bank generates
an authorization code and sends it back to the USA ePay gateway.
This authorization, along with other security verification such as
address verification (AVS) and card id verification (CVV), are then
given back to the merchant. |
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Step 4: Merchant Ships/Gives Consumer Goods Purchased
Once the credit card has been authorized and the merchant has
received the approval from USA ePay with an authorization code,
it is up to the merchant to provide the consumer with the goods
and services they have purchased. |
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Step 5: Settlement of the Transaction
Upon completion of the transaction and transfer of goods or
services, the merchant must settle the transaction in order to
complete the sale and initiate the transfer the funds from the
consumer's credit card account to the merchant's account. |
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Step 6: Transfer of Funds from Issuing Bank to Merchant Bank
Typically 1-2 work days after a transaction is settled the
issuing bank will transfer the authorized funds
to the merchant's Merchant Service Bank. |
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Step 7: Deposit of Funds from Merchant Bank to Merchant
When the Merchant Service Bank receives the transaction from
the credit card's issuing bank, it will then transfer those
funds (minus fees) into the bank account on file for the merchant.
This is the final step in the processing of a credit card transaction. |
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