Envelo

When a customer makes a purchase using a credit card, it triggers a cascade of activities and transactions. Here’s what happens:

1. Your customer gives you (the merchant) a credit or debit card or card information, via an on-site card swipe, phone or website.
2. The merchant submits the transaction to the acquirer, who sends the information to the customer's card issuer for authorization.
3. The card issuer sends authorization – that the card number and amount are valid – back to the acquirer.
4. Next, the acquirer processes the transaction for the cardholder. This requires that the acquirer send the transaction to the card association, which debits the issuer for payment and credits the acquirer.
5. Once the acquirer has been paid, the merchant receives payment – an amount equal to the transaction amount minus the discount rate, which is the fee the merchant pays the acquirer for processing the transaction.