Credit Card Payment Processing Workflow

In order to understand the workflow of credit card payment processing, one must first understand what payment processing is.

In a previous post, we discussed what is card payment processing. The workflow for processing a typical card payment could look something like this:

credit card processing workflow

The key players in a credit card process are:

  • Acquirer
  • Issuer
  • Credit Card Association
  • ISOs (Independent Sales Organizations)
  • Merchant
  • Cardholder
credit card payment processing workflow

Read more here: How does the payments ecosystem work? What does the payments workflow look like, from the merchant’s card payment to the acquirer?

What is Card Payment Processing?

Payment processing is the most secure way of handling credit and debit card transactions. All types of card payments are secure, whether it is an online purchase or an in-store purchase.

Payment processors are the ones who are responsible for secure handling of all card payments. Merchants get into a contract with these companies to handle all their card transactions. Processing services such as authorization, secure data handling etc. are all provided by these payment processors.

Here’s how credit card processing works:

In order to setup card payment processing, you will need a merchant account, a payment gateway and a payment device. Learn all about these requirements here: Payment processing 101 – What happens behind the scenes during a credit card transaction?