1. A cardholder purchases goods or services from a merchant.
   
2. The merchant sends the transaction information to an Acquirer (Merchant Bank) and is reimbursed for the sale less a “discount fee.”
   
3. The Acquirer submits the transaction to the Issuing Bank for payment via either the MasterCard or Visa settlement system.
   
4. The Issuer pays the Acquirer for the purchase less the interchange fee, through the settlement system .
   
5. The cardholder repays the Issuer for the goods or services originally purchased from the merchant.

• Increased Sales – Customers spend more when they are not restricted by cash on-hand. Accepting payment drives a higher average ticket for your business and supports additional purchases that might not otherwise have been made.
• Customer Satisfaction – Today’s customers demand the flexibility to pay how, where, and when they want. Whether it’s by debit or credit card or a specialty product, happy customers will be loyal customers.
• Operating Efficiencies – Electronic transactions save you time and money by automating many store procedures, speeding the checkout lines, and getting you paid faster.
• Safety and Slippage – Electronic payments keep cash on hand at a minimum and reduce the opportunity for clerical mistakes and pilfering.

Click here for our glossary of Basic Processing Terminology.

Click here for Types of Accounts to see which one is right for you!