Mercantile Transactions Using Credit Cards:



Two  major  components  comprise  credit  card  transactions  in  the  mercantile  process:  Electronic Authorization and  Settlement credit authorization processes at point-of-sale terminal. The credit card number is checked against the database and the transaction is either approved or denied, within few seconds.


Step-by-step a/c of a retail transaction follows:


Step 1: A customer presents a credit card for payment at a retails location.


Step 2: The point-of-sale s/w directs the transaction of to the Local Network access point.


Step 3: The system verifies the source of the transactions and routes to the appropriate authorization source.


Step 4: At retail location collects all complement transaction information into a ‘batch’.


Step 5: The system gathers all completed transactions and processes the data in preparation for settlement.

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