Credit card processing it a key part in our daily money transactions through credit cards when you enter your card in the credit card processing machine it’s not a magic that you can’t understand it is very simple to understand basically a credit card only hold the information of your bank account and your bank ID just credit card cannot do anything itself it needs a computer like Credit card processing machines to read information from this card then these machines contact your credit card issuer usually bank and when you enter the amount by the buttons on credit card machine it ask the bank to give this credit card processing machine owner the amount they ask against the things you buy this processing involve transferring this amount of money from your bank account to the account of this shop owner.
Parties involved in the process
Credit card association:
companies of credit cards like visa credit cards, master credit cards or American express credit cards are sometime called the credit card association.
these are the banks that issue you that credit cards also companies like American Express and Discover also act as banks.
these banks act like processors and they make transactions between merchants and credit card associations.
Merchant Account Providers:
merchant account providers are the companies that manage credit card processing usually through the help of an acquirer.
payments Gateways are portals that route transactions to an acquirer.