TRANSACTION PROCESSING SYSTEM

Credit card transaction processing system:

There are two type of credit card transaction processing system. They are:

 Merchant account processing

 Third party credit card transaction processing

Merchant account processing:

Merchant account credit card transaction processing is a type of credit card

transaction processing where the money is directly processed by the merchant
account providing bank.

Process:

 Using the secure form on the web site, the user enters the necessary
information.

 SSL-encrypted technology encrypts information entered by the client.

 The encrypted data is passed to the credit card transaction processing

gateway.

 The gateway decrypts data using a SSL certificate.

 The gateway verifies the information provided by the client.

 The information is re-encrypted using SSL technology and passed on to the

credit card transaction processing bank.

 On confirmation, the money gets transferred from your account to the

merchants account.
Third party credit card transaction processing:

In third party credit card transaction processing, the money is transferred through
a third party credit card transaction processing company to the bank. It comes
into use when the merchants account is not acquired due to the banks strict
policies and guidelines.

Process:

 Using the secure form on the web site, the user enters the necessary
information.

 SSL-encrypted technology encrypts information entered by the client.

 The encrypted data is passed to the third party credit card transaction
processing company.

 The encrypted data is passed to the credit card transaction processing

gateway.

 The information is verified and passed to the bank.

 The money is transferred by the bank from the clients credit card to the
third merchant credit card transaction processing company.

 The money is then transferred by the third party credit card transaction
processing company to your third party merchant account.

 Payouts are then made by bank transfer, checks, PayPal, etc