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3 minutes

Why does it take 2-3 business days to process credit card payments?

Explore the complexities of transaction processing in digital payments through our comprehensive module. From authorization to settlement, grasp the essential steps ensuring safe and efficient transactions globally. Let’s explore the technical side of payments: Transaction processing.

Understanding Transaction Processing in Digital Payments

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Step 1: Authorization

  • Ensures funds availability.
  • Prevents fraudulent activities.
  • Notifies unsuccessful payments.

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Step 2: Capture

  • Holds approved transactions.
  • Ensures funds availability for merchants.
  • Similar to holding a deposit.

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Step 3: Clearing

  • Networks verify transaction information.
  • Involves card schemes, acquiring, and issuing banks.
  • Checks payment details and authorization.

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Step 4: Settlement

  • Transfers funds from customer to merchant.
  • Finalizes payment within a few days.
  • Bilateral process between banks.

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Grasping the Essentials of Transaction Processing

By completing this module, you'll not only gain comprehensive knowledge about the digital payments environment but also be well-equipped to navigate and comply with these crucial standards.

Explore this module and more at The PaymentGenes Academy Foundation course to elevate your understanding of the ever-evolving world of digital payments.

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