It's important to understand the basics of transaction processing before you can make educated decisions on the products and services you need to properly support your business. This illustration is intended to provide you with that basic understanding.
Who is Involved in a Typical Transaction?
Cardholder - Makes a purchase using their card
Merchant - Accepts the card as payment for a purchase
Issuer - Provides the card to Cardholder and maintains that cardholder's account
Acquirer - Processes card sales for Merchant (First Data)
Associations - Visa and MasterCard
Authorization/EDC Vendor - Provides a means of electronic communication between Merchant, Acquirer and Issuer
Overview of a Card Transaction
Cardholder presents a card to the Merchant for payment
Merchant sends transaction on to their Acquirer (First Data)
The Acquirer sends the transaction to the Association (Visa or MasterCard)
The Association submits the transaction to the Issuer
Issuer pays the amount of the transaction to the Association
The Association pays the Acquirer, who then pays the Merchant
