Authorization process in a credit card transactions processing is nothing but getting approved by the creditor for a particular purchase. When the buyer hits the "checkout" button or presents the card to the cashier at the store, the information entered is sent to secured servers to complete the process. The merchant or the vendor online then sends a request to process the payment to the creditor or the issuing bank. The information that is sent during this process includes credit card number, expiration date, the CVV number, the billing address and the total amount of the purchase. The creditor in turn validates the personal information, makes sure the amount is within the credit limit, compares the received billing address with the address on file and validates the security code (CVV number). When approved, the amount is deducted from the total available credit limit of the card holder. As a part of the settlement during credit card transactions processing, the issuing bank then sends the confirmation or response to the request which consists of either an approval for the transaction in addition to AVS (Address Verification System) and CVV codes or a rejection. The end result is then passed on back to the merchant system or vendor website online. The information and authorization results are stored in the merchant system for later verification or processing. The buyer receives confirmation of the order or, if declined, will be asked to submit another mode of payment. What happens during a debit card payment process is no different than credit card transactions processing. The card must be branded with MasterCard or Visa logo in order for the merchants to accept it. When the information is submitted, the merchant may ask for personal identification number - a security number that will give access to the buyer's bank account to be able to deduct the money. The system will also let the buyer withdraw cash if needed, which is mostly free of cost. The rest of the debit card payment process is similar to the credit card transaction with the purchase being approved or declined based on the available balance. Most debit card processing are low cost credit card processing, meaning, it costs nothing to the merchant as well as the buyer. Also, low cost credit card processing is mostly preferred by merchants who are into the business newly, or those who cannot afford costly creditor transaction fees. Author Bio: This article has been written to provide an overview of credit card payment processing. The author has in-depth knowledge about merchant accounts that has capability to process all kinds of credit cards.
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