According to find.co.uk,credit cards form the base of many businesses theses days. It has been proved by researchers that people trend to do spend more if business holder is providing facility of credit cards acceptance.

There are five parties to a credit card processing transaction:

1) The cardholder 2) The issuing bank that issues the card and advances the line of credit 3) The merchant the retailer. 4) The acquiring bank that handles the merchants receipts 5) The network (e.g. Visa or MasterCard) which is a co-operative venture between the affiliated card issuers and which links the issuing and acquiring banks and co-ordinates the exchange of information and the flow of funds.

The cardholder's card is swiped through the merchant's point of sale terminal or any other credit card processing solution, which transmits information stored on a magnetic strip or a chip to the acquiring bank in encrypted form. The acquirer checks the merchant's ID, the card number, the expiry date, the credit limit and the remaining credit. The acquiring bank connects to the issuing bank via the network's computer. The issuing bank transmits the account information and later transfers the funds to the acquiring bank. The issuing bank debits the cardholder's account and reduces the balance of credit available. The network charges the issuing banks to cover its costs. The acquiring banks charge the merchants a percentage of each transaction and pay interchange fees to the issuing banks. The issuing banks charge cardholders interest on unpaid balances, and sometimes an annual fee.



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For more information on credit card processing,please visit http://www.paynetsystems.com< /a>