How Does Retail Credit Card Processing Work ?
Retail credit card processing works by connecting the merchant's point of sale system to the payment processor. This allows customers to swipe or insert their credit cards into a terminal, and for the transaction information to be securely transmitted over a secure connection. The payment processor then verifies the customer’s identity, checks for sufficient funds on the card, and processes the transaction. Once the transaction is approved, funds are transferred from the customer’s account to the merchant’s bank account.