Credit Card Processing 101

The credit card processing industry can be very confusing for most merchants, as it involves numerous players. Below are the primary payment processing terms you need to understand, and how they work together to enable credit card transactions.




When an in individual makes an online purchase on a merchant’s website, they will enter their credit/debit card details on a secure webpage (URL being prefixed with “HTTPS”), after which the information is encrypted and sent to either the merchant’s servers, a Payment Service Provider or a payment gateway. Once authorized, the merchant will fulfill the order for the shopper.