The Ins and Outs of Retail Credit Card Processing

Credit cards have become an important part of shopping for people in today’s economy. They provide customers with revolving credit lines that can be utilized at almost every retail store nationwide.

While using a credit card as a form of payment is as simple as sliding it through a card read reader, credit card processing is a complicated, multi-step process that happens behind the scenes. Understanding how this works can shed some light on why this type of payment is so popular.

Card Reading

The first step in credit card processing is to capture the card’s information using one of a number of card reading methods. Many retail stores often have specialized card readers that are tied directly into their point-of-sale system. This will allow cashiers to effortlessly integrate card processing into retail transactions.

Store owners can also equip their employees with smartphone retail credit card readers in order to capture their client’s data while on the go. Aside from using technology to read the magnetic strip found at the back of the card, a retailer can also key card information into their individualized point-of-sale system manually. This method is perfect for a company that is selling products over the phone or online where physical credit card reading is not possible.
Retailer’s Accounts

All retail companies that accept credit cards need to sign up for service with a merchant account provider. A seller’s transaction processing systems sends captured retail credit card data along with the transaction information straight to their merchant account provider. Their provider then passes the data to a card network interchange. This interchange connects credit card providers and banks around the world.

Network Interchange

The merchant account provider then passes this information through a network interchange to the institution that holds the retail credit card account. They will assess the credit card’s account current balance against its transaction amount limit. After checking, payment for the transaction will either be authorized or denied. The credit card provider then returns this information to the company that holds the retailer’s account. All of this usually takes as little as three to four seconds.

Payment Results

After receiving an authorization or denial for payment, the provider that holds the retailer’s account does a couple of things simultaneously. The company first notifies the seller of the outcome, and they in turn inform the buyer. If a transaction is accepted, the retailer account provider sends the credit card and transaction information back through the network interchange to the seller’s bank. The seller’s bank then requests the authorized funds to be transferred from a buyer’s credit card company.

Leave a Reply



It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by

Call (866) 837-0751 for details.