| Credit
Card Processing
 The
following information describes the step-by-step
process of a credit card transaction taking place
on the internet:
Step 1
When a consumer decides to buy a product or
service online, using common browsers such as
Internet Explorer or Netscape Navigator, the
secure order form of the merchant prompts the
consumer to enter their name, address, ship-to,
credit card information and any other pertinent
information required to process the sale.
Step 2
Upon completion of the order form by the consumer,
the "Submit" or "Pay Now"
button is clicked to begin the payment process.
Step 3
The button is linked to the LinkPoint
Secure Payment Gateway which
routes and obtains the credit card authorization
or declination code. The credit card is
checked against the address verification system (AVS)
to authenticate the cardholder.
An authorization reduces the available credit
limit, but does not actually place a charge on the
statement of the cardholder or move money to the
merchant.
In line with bankcard association rules, the
merchant is not allowed to settle transactions
until the ordered goods can be shipped, therefore
a time lag may exist between the authorization and
the settlement process.
| Transaction
Descriptions |
| Sale: |
Acceptance
of the credit card for purchase of
a product or service. |
| Return
(Credit): |
Is
issued when the consumer wishes to
return a product or service after
the transaction has been settled. |
| Void: |
Is
issued when the consumer cancels
the order the same day, and prior
to, the settling of the
transactions. |
| Settlement: |
The
final step to complete the credit
card transaction between the
consumer and the merchant.
The batch (an accumulation of
transactions from the current day)
is settled daily as a group.
Settlement means that the credit
card is charged and the money is
moved to the merchant account. |
|
|
Cardservice
International electronically deposits the
money into the checking account of the
merchant within 48 hours of settlement.
|
|
