How Credit Card Processing Works - Transaction Cycle & 2 Pricing Models

#howcreditcardprocessingworks #merchantaccount

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How Does Credit Card Processing Work

This video explains how credit card payments are passed from the cardholder to the merchant bank account. Included in the video is the transaction cycle, and a detailed explanation of the two main pricing models.

If you've ever wondered:
How Does Credit Card Processing Work?
How To Process Credit Cards?
How Credit Card Processing Works?
How To Accept Credit Card Payments At Your Business
or Understanding the transaction flow,
then you'll want to watch this video.

It's part of a credit card processing basics video series so be sure to check back for more updates and additional videos in the series.

[msmoneyboss]

this is the kind of video that people should be watching instead of those which will actually teach you to keep on spending your money

[somebodyelse]

Thank you for breaking it down and explaining how this all works! I've tried for 20 years to get a handle on the fee models, processors vs interchange, and the overall process. This video does a nice job of breaking it down and then summing it all up!

[stephaniehale]

*You are the man. It's sad that most of the people from outside the payment industry don't understand, even at a high-level, the ecosystem of payments. Everyone knows Visa and MasterCard, but no one knows what they do and how they make money. For the majority of the people, it's just a logo on their card. These companies, both networks and merchant acquirers/payment processors, are very profitable. These are essentially technology companies with very low overhead and highly scalable business. I briefly worked for Vantiv/Worldpay and had a time of my life learning about the industry. Thank you for this awesome educational video. You should charge your own interchange for doing this video. :)*

[brdane]

I would love to see an inside look inside the buildings that contain the mainframes/hardware that does the actual payment processing... what a powerful moment it would be to be present in the same room as a big box that controls part of the world. I had an interview for a Software Engineer position at MasterCard (didn't get the position) and the interviewer worked on the payment-processing portion of the code... he told me that while there was a lot of new code being added to its process, there was original 50-year old code still being used to process the payments... a surreal thing to think about and it would had been even more surreal to see the code first-hand.

[pillarsvictoria]

Great video! Understanding how credit card processing works can help people to be more aware of purchases using their cards.

[Anonymous-tqiu]

Thanks buddy you really helped me a lot for my accounting homework

[Anonymous-tqiu]

The sequence of payment flows in a credit card transaction was actually quite hard to understand. Luckily I have found your video.

[faizanashraf]

Wow great I am also working in a banking sector and this info is very useful for daily business

[DarylSkinner]

How dose it work when you pay credit card company back does the money go back into one big bank account

[anotheperspective]

thanks much for the video
i want to run an online store and i wish to know more about payment methods. please i want to find out, does one need two separate merchant bank accounts to create visa and MasterCard or we can create it with one bank account? Also lets say one has just the the visa card will it matter if customer is paying through any other card?

[fuertefarmer]

Great video liked and subscribed. How does it work for a small business (not a bank) who issues credit cards? Do you need to go through a bank for accessing the network?

[sandeeppatidar]

Great Video with point to point explanation... #merchantstronghold

[kunalrai]

Really Nice and Clear video. Please keep it up...

[curtiswyokum]

It's very helpful and understanding Video. Thank You For This Video. #highriskmerchantprocessors

[ffrob]

I looked on the web page for the merchant account guide but I cant find it. Maybe im not looking in the right places. Can you please leave a link to it or tell me where to look. Thank you for the video.

[nagessonarrow]

I got good explanetion about merchant, processer card, bank account online

[dangthienquoc]

It is very interesting to learn more about...

[Itsmal]

Great presentation! How does or what software is used by Credit Card Processing companies to determine the qualifications of the transaction? I.e,  How would the software identify when a Business card or reward card is used to properly category the transaction into the "Non-Qualified" category? I know the Bank Identification Number (BIN) is crucial in the process.

[MrCwalkerify]

What’s an example of a payment processor? Thanks in advance

[horstseehofer]

Thanks for this very good video! I`ve got just one question left, so according to your video it is okay to give out the credit card details (card number and security code) over the phone in order to make a payment?