Credit card processing is a detailed process that allows businesses to accept credit cards as a form of payment. The first step in the process is called authorization, which is when the cardholder's bank approves the purchase. Once the purchase is authorized, the next step is called capture, which is when the funds are transferred from the cardholder's account to the merchant's account. The last step in the process is called settlement, which is when the funds are actually transferred from the merchant's account to the cardholder's account.
There are many different types of credit card processors, but they all follow the same basic steps. The most popular type of processor is called a third-party processor, which is a company that provides the software and hardware necessary to process credit cards. There are also processors that work directly with banks and credit card companies, but these are less common.
