Source: Payment Gateways | myEcommerce|
- The merchant's website sends a CC transaction to "Payment Gateway" via a secure site connection.
- The "Payment Gateway" receives the credit card transaction request and submits it using a secure site connection to the "Merchant Bank's Processor".
Businesses or non-profits accepting payments will need an account with one of the payment gateway services. In addition to processing payments they can provide services like recurring billing and fraud protection.
- The "Merchant Bank's Processor" sends the complete transaction request to the "CC Network" (financial system network that is used to process CC transactions).
- The "CC Network" forwards the complete transaction to the "Customer's CC Issuing Bank".
- The "Customer's CC Issuing Bank" accepts or refuses the transaction depending on the valid information card #, name, expiration date, Card Verification code (CVV, CVC, CID) and customer's available funds and sends back the results to the "CC Network". Address Verification Service (AVS) will also verify the address which will not be available on a lost card.
- Then the "CC Network" transmits the results to the "Merchant Bank's Processor".
- The "Merchant Bank's Processor" sends the results to the "Payment Gateway".
- The "Payment Gateway" saves the results of the transaction and then transmits those results to the merchant's website who deliver them to the end customer.
This is the end of the approval process, which usually takes less than 3 seconds.
- If the "Customer's CC Issuing Bank" checks the card number, name, approved the transaction, it will send the funds to the "CC Network".
- The "CC Network" sends the funds to the Merchant's Bank. Within two to four business days the "Merchant's Bank" will deposit the funds in the Merchant's bank account. That is called the settlement process.