Key Takeaways
- Credit card transactions rely on a multi-step process that extends beyond the checkout moment.
- Authorization, settlement, and funding occur through coordinated systems involving processors, networks, and banks.
- Payment gateways and processors play distinct roles in data formatting, routing, and risk screening.
- Issuing banks make approval decisions, while card networks facilitate communication between parties.
- Understanding transaction flow helps merchants resolve issues and adopt new payment features more effectively.
Credit cards can be a wonderful business tool. They allow you the flexibility of easily using credit to make purchases under the promise that you will pay back the money that you borrowed on credit. Credit cards are a great tool for consumers and for regular small businesses. They give you easy access to credit and allow you to focus on what is most important for you in your business and in your personal life.
