A card payment can feel instant to the customer, but several parties work together behind the scenes to move the transaction from the customer to your business.
The parties involved
- The customer and the bank that issued their card.
- Your business, as the merchant accepting the payment.
- The payment processor and the acquiring bank that work on behalf of the merchant.
- The card networks that connect issuing and acquiring banks.
The main steps
Authorization: the card details are sent for approval, and the issuing bank approves or declines the payment.
Capture and clearing: approved transactions are submitted for processing.
Settlement: funds are transferred and deposited to the merchant account, minus applicable fees.
Why it matters
Understanding these steps can help you read your statements, plan for deposit timing, and ask better questions when comparing providers.
Have questions about your own setup? Tell us about your business and a member of the Trice Pay team will contact you.
