At the time of purchase, the merchant requests and receives authorization to allow the purchase to be conducted, and an authorization code is provided.
The process includes:
- The cardholder swipes or dips card at the merchant location.
- The acquirer (merchant’s bank) asks the payment brand network to determine the issuer (carholder’s bank).
- The payment brand network determines the issuer and requests approval for purchase.
- The issuer approves the purchase.
- The payment brand network sends approval to acquirer.
- The acquirer sends approval to the merchant.
- The cardholder completes the purchase and receives a receipt.