Merchant resources
How credit card processing works
Card payments move through authorization, clearing and settlement. Understanding the participants helps explain fees, deposit timing and disputes.
Who is involved?
The merchant accepts payment. An acquiring provider or processor connects the merchant to card networks. The card issuer serves the cardholder. A gateway may transmit payment information between business software and the processor. Responsibilities vary with the arrangement.
Authorization is not the deposit
During authorization, the issuer decides whether to approve a request. The merchant later submits transactions for clearing and settlement, often in a batch. Approval does not guarantee that a transaction cannot be disputed, reversed or held.
Where the fees come from
The total can include interchange, network assessments, provider markup and other charges such as gateway, software, monthly, batch or equipment fees. Card type, acceptance method and transaction data influence costs.
Example: a counter sale and an invoice
A card tapped at a counter and a manually entered phone payment may have different cost and risk characteristics. Compare your mix of card-present, online and keyed transactions rather than a single advertised percentage.
Settlement and merchant responsibilities
Funding depends on batch cutoff, banking days, underwriting and holds. Keep records, review disputes promptly and follow provider security requirements. Tokenization and approved devices can help reduce exposure but do not remove all merchant obligations.
Common merchant questions
Why did an approved payment not appear in my deposit?
Check batch status, cutoff, refunds, fees, holds and bank timing with the provider. Authorization and settlement are separate stages.
Are debit and credit treated identically?
No. Network rules, routing, entry method and fee structures can differ. Ask how your program handles each transaction type.