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STEPS
1 thru 7
1. A customer presents their credit card for payment
2. Using their credit card number, you submit an electronic request
to the processing network for "authorization to capture funds"
from the cardholder's credit card account in the amount of the purchase.
Traditionally, one would submit this request by swiping a credit
card through an electronic transaction terminal provided by the
bank. With QuickCommerce, this request is provided electronically
to our payment gateway servers, which then route the request along
the processing network.
3. The processing network immediately receives your electronic request
and determines if the cardholder's account is valid and if the funds
are available. If they are, the processing network returns an electronic
response to your terminal or computer. This response is called an
"authorization code", and is your guaranteed authorization
to capture the funds. Typically, this code is a six-digit number.
The transaction and its associated authorization are stored in a
"batch", where other transactions for that day reside.
4. You print a receipt for the customer using the electronic terminal
or your computer and the customer signs the receipt. As far as the
customer is concerned, the transaction is complete. As far as you
the merchant are concerned, there is one more step to complete the
transaction.
5. At the end of your business day (usually), you submit a final
request to the processing network to go ahead and "capture
the funds" that you obtained authorizations for during the
course of business that day. This is called "settlement"
or "settling your batch". This request is also submitted
using the electronic terminal or your computer. The processing network
immediately receives your response electronically and determines
if the capture amounts contained in your request match the authorizations
for each item. If so, the request is granted and an "Accepted"
response is returned to your electronic terminal or computer. A
settlement report can be printed showing the grand totals by card
type (Visa, MasterCard, American Express, Discover, etc) for the
settled batch. Note: any corrections to your batch, such as voiding
a transaction, must be made prior to settlement.
6. Within 48 to 72 hours (usually), the funds associated with the
batch you settled are deposited electronically into your business
bank account. Typically, the discount rate you pay to your merchant
account provider are deducted from the deposit before it transferred
to your bank account, resulting in a "net deposit" of
funds.
7. At the end of the month, your merchant account provider will
mail a statement to you, detailing the credit card activity for
the month and the associated fees you have been charged for such.
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