Credit Card Bankl | Processing Credit Cards

The Credit Card Process

In order to understand the Internet model, you need to understand the similarity and differences between the Internet model and the traditional retail model. Traditional retail model being defined as card present with a swipe machine being used. Internet model being defined as an on line real time processing.

Retail Model:
	Bank	Network	Credit Card Swipe Machine	Cash Register
	At the end of the day, a batch deposit is made .	The network contacts the card holders Bank for authorization. Approval code is sent back to machine (gateway).

Internet Model:
	Bank	Network	Internet Gateway	Shopping cart

The network and bank relationship, as well as the approvals, remain the same. The major difference is that the the cash register becomes a shopping cart and the credit card swipe machine becomes an Internet gateway.

Most of the credit card swipe machines, use standard phone lines and "dial out" to the network. The Internet Gateways use MasterCard/Visa certified direct lease lines to specific networks. Each bank works with specific networks, therefore, not all Internet gateways have direct lines to all the networks. It is of the utmost importance that the bank, network, Internet gateway and shopping cart are on the same platform for seamless, quick and accurate transaction processing.