Finance Credit Cards

How Card Credit Processing Works

Published at 02/06/2012 00:06:06

Introduction to the credit card processing

All of you must be aware of the term credit card. Credit cards are the simplest way of getting credit from the banks and other finance agencies so that you can settle down your expenses easily. There are several financial agencies that are giving people the benefits of credit cards. Many banks also are providing credit cards to their customers. People find it really very easy to make the settlement of their expenses with the help of credit cards. There are lots of people that are now using credit cards for the purpose of paying off their expenses. Credit cards are used by most people. However, there are only some who actually knows how the card credit processing is done? This is actually very interesting know. There are some steps that are involved in the working procedure of the credit cards.

History of credit cards

The history of credit card processing is very interesting to look at. The use of modern credit cards actually came from va ery old method that was used by the people during 1800 AD. At that time people used credit coins and charge plates for the exchange of goods. In 1900, the first look of modern credit cards came into existence. The oil companies were the first ones to make their own proprietary credit cards. These cards however, have limited areas where they can be used. After the Second World War, another credit card was introduced which was named The Denis Club Credit Card. The first bank card was however, made in 1946 by John Biggins who was a banker in Brooklyn. The name given to it was Charg-it. After that, many card credit processing companies were made and there are now too many companies that are issuing the credit cards to people.

Credit card processing steps

Card credit processing is a very simple process to understand. The first step is to take the credit card from some financial agency on the basis of simple application. Once the credit card is taken, the actual processing starts. The processing of the credit card is started as the buyer uses the credit card. The next step is known as authorization. For this process, is used. It with the help of some very complex routing system marks the authenticity of the credit card. The next step involves the bank details or the details of the credit card company from where the credit card is bought. Once the details are in there is the processing of the transaction of the amount from the bank. The transaction is done when the bank recognizes the credit card. The final step is the exchange of the amount from the buyer’s account to the seller’s account. In this way, the process is regulated.


Card credit processing is a complex procedure and there are many things that are happening in between the process. The card credit processing being complex does not take much time, but just a few seconds to complete the transaction. Therefore, it is very rapid in fact.


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