November 17, 2020 [molongui_author_box]

How Payments Work

Typically, neither merchants nor their customers need to gain in-depth knowledge of the bankcard system and its operational process. They rely entirely on banks and credit card processors to manage transactions and the payments lifecycle. But, why not have a better understanding of how payments work and how transactions occur?

Knowledge in this field can help businesses identify the best processing solution to fit their needs. And developers can evaluate their capabilities in creating a payment solution on their own. That’s where our video guide comes in.

The Transaction With a Credit Card

Initially, it seems that only a couple of seconds are needed once a cardholder makes a transaction with a credit card until it is completed. But in reality, the transaction path is quite complicated. Usually, at least six players have been involved with each operation. This is a cardholder, an issuing bank, the merchant, the merchant’s bank, a payment processor, and a card association. All these players participate in every transaction as they are all connected and in communication when a buyer initiates a purchase.
With our video, you’ll be guided through this process visually.

Once you are done watching this video, check out our other videos from this instructive series about payments and gateway features. You will learn in detail about Merchant Onboarding, Tokenization, Batch Processing, Recurring Billing, Payment Card Decline Recycling, and other features that every reliable payment platform should possess.

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