Though many people shop online and use a credit card, few understand how online credit card processing actually works. While the process may seem complex, it can be broken down into a series of simple steps.

1. Credit Card Processing:
How Does It Work?

2. Online credit card processing
Though many people shop online and use a credit
card, few understand how online credit card
processing actually works. While the process may
seem complex, it can be broken down into a series
of simple steps.

3. Step 1: Cardholder initiates transaction
The customer submits their credit card details to the
merchant to start the process.

4. Step 2: Data travels through gateway
The merchant submits the credit card data into
an online payment gateway via a secure
connection. The gateway formats the data and
passes it the merchant's bank processor.

5. Step 3: Data sent to credit card network
The merchant's bank processor submits the details
to the credit card network, which routes the
transaction to the issuing bank (the bank that issued
the customer's credit card).

6. Step 4: Transaction approved or declined
The issuing bank approves or declines the transaction.
The transaction results are shared with the credit card
network, then the merchant bank's processor, and
finally the payment gateway.

7. Step 5: Information received
The merchant can approve or decline
the transaction in real-time.

8. Learn more
First Atlantic Commerce is a leading provider of
international credit card processing solutions, including
payment gateways, merchant account solutions, and
anti-fraud protection.
Visit us online at firstatlanticcommerce.com.