Can you walk through the full credit-card payment flow from the payment terminal and swipe to the issuing bank returning an authorization code?

Asked Jul 3, 2015· 1 answer
Faisal KhanAnswered Jul 3, 2015
Even though this infographic technically explains how the Interchange fees, etc. is earned/split, it does provide a very good standard flow of the transaction.

Source: Understanding Swipe Fees and Interchange

Here is the flow otherwise:


Source: http://www.pathwaypayments.com/

Other resources:

  • How Payment Processing Works
Card AuthorizationCard IssuingIssuer Processing
Related in Card Networks and Card Issuing
Why don’t banks and card processors let users restrict account access by IP location or country for extra security?1 ansWhat types of organizations are authorized to issue credit cards?1 ansCan payment-card issuers decline a transaction when the merchant does not provide billing-address information?1 ansWhat is involved in issuing prepaid debit cards through offshore banks?1 ans