The Process Of The Payment Using A Credit Card

Purchasing an item with a credit card undergoes a series of a complicated process before each party, the buyer and the seller, can seal the deal with a real money transaction. The buyer only has a card on his/her hand, and the seller receives nothing but digital financial statement.

How can the system work? What actually happens the moment you swipe your card on the magnetic card reader? Read this article further if you want to know.

Basic terms to know

Before discussing deeper into the process, you need to know who are the players in a credit card transaction.


Shopping using credit cardsYou are the consumer. The time you want to buy an item with a credit card, you have become the store customer and are liable to the terms and agreement for the credit card use.

The basic assumption is that you know how much your card charges you, and you are aware of the consequences are if you do not pay your debt.

Consumer bank

The bank in which you save your money holds the pivotal role of your financial information. They are the one who is going to determine if your transaction can proceed or not. And it depends on whether you have the necessary amount of loan allowance for the item you purchase.


Merchant is the store with whom you do the transaction. You are expecting to pay the price for the item the merchant sells. But a transaction with a credit card will not transfer your money directly to the merchant’s account. Instead, the fourth party is involved.

Merchant’s bank

Unless your credit card bank is the same with the merchant, your purchase is going to be a transaction between two different banks.

Credit Card Processor

Credit Card processor serves as the third party that regulates the communication between the merchant’s and the customer’s bank. Services, such as MIDTRANS and Paysera, offer surveillance and a gateway service for their clients. They will make sure that the money transferred from the client’s customer is as agreed upon the transaction.

Card Network Association

VISA and MasterCard are the two examples of Card Network Association. What they do is not to supervise the approval of a credit card. Instead, they offer a network in which the transaction can take place.

The process

Card ReaderOnce you swipe your card on the reader, the merchant will gain the purchase information and put the amount of money that is going to be deducted from your account. This transaction information is then processed by a processor.

The processor will send the information to the Card Network and then passed to the customer’s bank. The verification and authentication happen at this stage. If your balance or allowance is not adequate to make the purchase, the payment request will be rejected. Otherwise, it will be approved.

The last process takes place at the merchant’s counter. There you will know whether your card has been ‘approved’ or ‘declined’.

How quick it is

card readersSix parties are involved in a transaction, and with the modern Internet connection, the communication between them can be done in no more than 20 seconds.

That is how complicated a credit card use is. So the next time you are wondering what happens with that simple swipe of plastic card of yours, you will know that it is more than it seems.

Discover how a smart doorbell can make a huge difference

Most people tend to overlook small things, thinking that they don’t matter that much. But in reality, these little things that we usually ignore can actually make a huge difference. They can even make life so much easier for us.

Let us talk about a doorbell as an example. Some homeowners may say, “I don’t need it. People can just knock on my door.” But have you really thought about the advantages of having a doorbell, especially now that we already have the so-called smart doorbells?

Smart doorbells? What do they do? Are they worth it?

What you need to know about smart doorbells

With technology advancing every single day, more and more gadgets are being invented and offered in the marketplace. Just like a smartphone, a smart doorbell can make a huge difference. It can do things for us that we never thought they could. Read further and let us discover how.

Know who your visitors are

smart doorbellThe first advantage of investing in a smart doorbell is that you will be able to know the person who is knocking on your door. You will get to see him or her first before you go ahead and open your door and let them in. This will keep you safe from strangers and those people with bad intentions that go from one house to another.

When looking for the best doorbell, it is advisable that you go for something that has a video. This way, you will get to see the person at your doorstep first. Take a look at the comparison between ring pro vs skybell hd smart doorbells. See which one of these best suits your needs.

Talk to the person at your doorstep

Another advantage of having a smart doorbell installed in your home is that it allows you to talk to your visitor. With this, you won’t have to open the door right away. You can ask them first what they need. You can do this too even if you are not actually at home. You will just have to use your smartphone.

Track your visitors

man in a suit using an iPhoneWhen you are away, a smart doorbell can capture an image of whoever comes by your house. You can then check the images out later on. This is beneficial because it would be easier for you to track those people who go to your house when you are gone. If the guest has something important to give you or tell you, then you can just call them right away.