With the rise in the trend of plastic money people have gone cashless and started following the trend of swiping the card for even the smallest purchases they make. Making payments online have pushed people to further make their lives comfortable and feel safe and smart. There is no botheration of carrying cash every time when everything is being digital and friendlier.
You must be finding swiping a card process quite easy and simple as it is just a matter of a few seconds. You just swipe your card on the machine at the store, enter a PIN and receive a message from your respective bank that a certain amount has been deducted. However, the process is quite complicated and involves several stages. Did you ever wonder, what is the entire process that follows at the back end to carry out a successful transaction? Here is the process, in brief, to make you learn how an online card payment is processed.
To carry out a transaction, there are three major players. One is the merchant, the customer and the payment gateway.
The merchant swipes your card at the point of sales, the machine used to swipe the card, the merchant bank at the bank end processes the request into the merchant account that you have acquired as a business owner.
The customer initiates the request to carry out a transaction in order to pay for his/her purchases to the merchant. He/she enters the PIN to carry out a safe transaction.