How Merchant Payment Processing Works

Customer offers her credit card to pay for an item.
Merchant swipes/keys in credit card information and the customer signs the authorization slip.
Through the processing center and interchange, the transaction is encoded, verified and sent on to the bank for approval
Once the bank approves the transaction, the issuing credit card company is credited [CF1] with the payment
The bank simultaneously sends its approval back through processing and interchange
Processing and interchange send the approval back to the merchant
A receipt is issued and the transaction is complete

A diagram of the credit card processing cycle

“Michael has implemented Strategies to Save Culligan Water Thousands per Year. Michael is a Professional Sales Leader and his Business Intelligence is Outstanding.”- ANDREW HOLDEN, President/ CEO at Culligan Rochester

“Mike Krause has been an invaluable asset to me and my company over the years. He brings cutting edge ideas to the his clients and has the unique ability to work hand-in-hand to integrate them with the overall goal of profitability in mind. I highly recommend Mike to anyone looking to grow their business.”- DOUGLAS IRWIN, Insurance Sales at Siegel Insurance

“Sales Sense Payments is a professional, efficient, accurate, low-cost credit card payment processing system.”- PAT W., CPA – Rochester, NY