Understanding Credit Card Processing
Transactions happen instantaneously. You, the business owner, know if it is approved or declined and when you get your money. But do you know how it works? Below we outline the 7 primary steps to credit card processing and how the Swipebox gateway plays its part as the main hub. The Swipebox is PCI DSS compliant and encrypts all sensitive data to ensure the utmost security.
Your customer submits his credit card for payment over the phone, web, or in person.
The Swipebox gateway manages the complex routing of the data on behalf of you, the merchant, through the following steps/entities.
Swipebox passes the secure transaction information via a PCI DSS secure connection to the Processor.
The Processor submits the transaction to the credit card network (like Visa or MasterCard). The credit card network routes the transaction to the bank that issued the credit card to the customer.
The issuing bank approves or declines the transaction based on the customer's available funds and passes the transaction results back to the credit card network.
The credit card network relays the transaction results to the merchant bank's processor. The processor relays the transaction results to Swipebox.
The Swipebox gateway stores the encrypted transaction results and sends them to the website for the customer and merchant to see.
You deliver your goods or services to the buyer.
The issuing bank sends the appropriate funds for the transaction to the credit card network, which passes the funds to your bank in 24 - 48 hours.
The bank then deposits the funds into your bank account.