An online business that accepts credit card payments will achieve success by being able to serve customers worldwide.
Learn how to start accepting credit cards with this guide.
Meanwhile, the credit card network facilitates the process of credit card transactions between the cardholder, the business owner or the merchant, and the credit card company.
For instance, Visa and Mastercard are credit card networks, and they can facilitate the transactions made through Citibank or Capital One credit cards.
Businesses can also accept credit card payments through a third party company that processes credit cards on their behalf.
It encrypts the credit card information and sends it to the acquiring bank.
The acquiring bank communicates with the credit card network and the issuing bank regarding the transaction.
Afterwards, the acquiring bank sends the code to the electronic terminal, which issues a receipt showing whether the purchase is approved or denied.
This back-and-forth process takes only a few minutes.
In the digital commerce landscape, 71% of payments come from credit and debit cards, according to Javelin Research.