how do merchant get their payment when goods are sold with credit cards?

Question

I mean the process.

Answer 1

Merchants are signed to an agreement through an acquiering bank (Member of the card association who is funding the transaction). In this agreement - specified is the discount and transaction fee schedule. It is actually the acquierer who funds the merchant (usually with in 48hrs of the transaction being settled through a terminal or device), less specified fees (discount and transaction charges)... For Example - a $100 transaction with a merchant who has a discount rate of 1.9% and a transaction fee of $.20 per. The 'acquierer' will fund to the merchant's bank (local) roughly $97.90.

The acquierer is paid by the issuer of the credit card through the card association's system.

Answer 2

1.) The customer places an order with their credit card through any type of point-of-sale; shopping cart, retail store, wireless PDA, online terminal, etc..

2.) An authorization request is sent to to the customer's credit card issuing bank to verify card and if funds are available.

3.) Approval or Decline response sent back to merchant.

4.) With order Appoved, merchant fulfills customers order.

5.) Merchant sends settlement request (usually once a day)

6.) With settlement complete, merchant account provider directs funds directly to merchant's checking account - usually on the second business day after the transaction.

7.) Most reputable merchant account providers deposit the full amount into merchants checking account and only deduct fees (interchange and others) once a month.

Please feel free to contact me with other questions.

Answer 3

The funds are credited directly to the merchant's bank account.

Answer 4

The credit generates a deposit into ther bank account form the credit card company less any fee they must pay for the service.