How are credit cards transactions processed? Learn more here:
The two biggest credit cards companies, worldwide, are Visa and MasterCard. American Express, Diners Club and JCB are also widely used. In a brick-and-mortar shop, credit card payment is usually made through a card reader, requiring the signature or PIN of the cardholder. In e-commerce, the payment process differed slightly. The customer enters his card information – cardholder name, card number, expiry date and a three-digit card security code.
The 3D Secure process, trusted by most retailers and customers, minimizes the risk of credit card fraud through additional security queries. Depending on the credit card, this corresponds to Mastercard SecureCode or Verified by Visa. Although 3D Secure process offers more security for merchants and buyers, it does impose an additional effort for the merchant, who must register, and an additional step in the payment process.
In e-commerce, shop owners can benefit from the credit card acceptance contract of a payment service provider (PSP). This offers the advantage of simplified PCI DSS certification and technical connection to the acquirer. Usually, credit card payments are processed as follows:
All processing of the credit card data is subject to strict security requirements, which were determined by the credit card industry, or PCI DSS (Payment Card Industry Data Security Standard).
When reversing a purchase, the card holder seeks credit for the amount paid. This might be caused by a fraudulent or erroneous transaction. There are two different ways to get a credit. The dealer himself might issue a refund. In this case, a previous booking is reversed, without causing the cardholder high fees. However, if the issuer is called in, there will be a chargeback. In this case, the procedure takes a few days and provokes fees between 20 and 60 euros for the merchant.
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