Nowadays,we hardly use cash to buy things. Money orders and cheques have become a thingof the past. These days, almost all of us have a credit card. Payment with acredit card is fast, easy and convenient. Although there are many stagesinvolved in Card payment processing, it is still the fastestand the most reliable fund transfer method.Advantagesof getting a card terminalIf youwish to introduce card payment processing systems in yourbusiness, you have to start by getting a credit card terminal, or a machinethat processes credit cards. With the upgradation of the credit card machines,it is easier for the merchant to handle credit card that handling cash. Thesecredit card machines can handle debit cards, gift cards and cheques too.However, they are primarily made for performing transactions using creditcards.How the systemfunctionsThe cardpayment processing terminal communicates with the bank via a telephoneline. The same can also happen using the internet connection. The connectionmay be wired or wireless usually, these are connected in dial up usingtelephone lines. Some card terminals can also use cellular networks and can dotransactions using the GPRS. Data related to the credit card is transferred byswiping, inserting or typing. The transaction takes place in place in manyphases. However, the entire process is completed in seconds.Thedifferent stages involvedThe cardpayment processing system is broken down into the following stages:First step involves the customer making a purchase from your store and he or she decides to pay with the credit card. Suppose, you have a credit card terminal at your store connected to the service provider via the telephone line. All you do is swipe the card or manually enter the card number. The card terminal then connects you to the payment gateway.Next, the payment process is routed to the merchant’s bank processor. The processor then submits the payment to credit card network, such as MasterCard or Visa. Once the authentication is done, the payment process reaches the customer’s card issuing bank. The card details, including the expiry dates, names and CVV numbers are checked there. If the details are valid and the linked bank account has enough funds, the payment process proceeds.In the third steps, the card issuing bank sends the payment processor an authorization code that lets it process with the payment. If there are any faults, like there are not sufficient funds, then the payment process is dropped and a decline message is sent to the payment processor.The processor passes the authorization code of the decline message to the card terminal. If the payment was approved, the terminal will print a receipt on which the customer has to sign. If the payment cannot be made, it will be shown on the terminal screen. It all happens in less than half a minute.The bank finally transfers the required amount of funds to the merchants account electronically.BottomlineCardpayment processing is a surprisingly complex process. However, it is secure and fast.Introducing a card terminal in your business will help it grow.