|
[2001-04-15] Credit Card Processing Vendors
Gain Understanding
To gain an understanding of how different vendors make payment transactions, we must first figure out how credit cards were originally designed to work. Before anyone even thought of ecommerce, or even EDI became widespread in commercial uses, credit cards were created. However, they did not have a magnetic strip to store information, so all credit card purchases were called in, and a carbon copy of the card was made. With advances in technology, the magnetic strip was added, so merchants could submit customer card information electronically, and quickly get back approval numbers, which were then sent to the bank on carbon copies of the cards. The introduction of the internet and standard EDI for merchant to bank credit card authorizations cut out this step, so now your purchase goes to your creditor, and money is transferred to the merchant's bank, in only a few seconds.
|
|
