@barakas
⁉️ What happens behind the scenes when you pay with a card?
Let’s uncover how major payment systems like Visa and MasterCard operate.
🌐 Key Participants
Customer: Makes the purchase.
Merchant: Accepts the payment.
Issuer: The customer’s bank that issued the card.
Acquirer: The merchant’s bank processing the payment.
♻️ Payment Process
1️⃣ Payment Initiation:
The customer uses their card, and the merchant sends a payment request to the acquirer.
2️⃣ Authorization:
The acquirer forwards the request to the issuer via the payment network. The issuer verifies funds and approves or declines the transaction, sending the result back.
3️⃣ Clearing and Settlement:
Banks reconcile transactions to calculate net sums, followed by the actual fund transfer, which may take several days.
https://t.me/barakas_fi/44
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