{"id":2033,"date":"2022-10-12T11:22:00","date_gmt":"2022-10-12T15:22:00","guid":{"rendered":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/?p=2033"},"modified":"2022-10-17T13:25:19","modified_gmt":"2022-10-17T17:25:19","slug":"how-credit-card-processing-works","status":"publish","type":"post","link":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/2022\/10\/12\/how-credit-card-processing-works\/","title":{"rendered":"How Credit Card Processing Works"},"content":{"rendered":"\n

Credit cards<\/a> have undoubtedly made our lives a lot easier. Since their inception, they\u2019ve continued to impact our daily routine in more than one way. The little travel credit card<\/a> you have in your wallet is quite a powerful tool. It enables you to purchase items anywhere at any time you like.<\/p>\n\n\n\n

But have you ever wondered what goes behind the scenes and how credit card processing<\/a> works? Let\u2019s take a deeper look into the entire payment process.<\/p>\n\n\n\n

Authorization<\/strong><\/h2>\n\n\n\n

Authorization is the first step that takes place in the entire process. The merchant is required to take approval to deduct money from the credit card from the issuer. So, when a cardholder gives their card to pay at the POS, the information is acquired and transferred to the acquiring processor.<\/p>\n\n\n\n

The bank forwards crucial credit card information to the network (Visa, Mastercard). The network approves the transaction and then proceeds to get the relevant approval from the bank that issued the credit card. This leads to the next step, which is authentication.<\/p>\n\n\n\n

Authentication<\/strong><\/h2>\n\n\n\n

At this stage, the bank that has issued the card verifies all the important information. Some of the information will include:<\/p>\n\n\n\n