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Payment Processing

Payment processing can seem ultra complicated. Plus, a lot of companies aiming for your business poorly explain their merchant processing services and how their hardware works. At Bank of Merchant, we make it our mission to offer top-notch service with easy, digestible information on how our systems function. We work right alongside you so payment processing is efficient, simple, and without headaches.

Stages of Payment Processing

There is a distinct chain of steps to the transaction and payment process. Once you understand each one of these stages, you’re on your way. So, let’s take a look at the four-phase chronological flow of payment processing.

What are the stages?





Now let’s dig deeper and see exactly what transpires during each of these stages.

  • Payment: This occurs when a customer (or cardholder) submits a request for payment – they swipe their card, tap their cell phone, insert it into a chip reader, or type the card info into a virtual terminal . Essentially, they’ve tried to pay you for the services you provided them.
  • Authorization: This stage is where the banks communicate with one another through the use of the Network. Basically, the transaction goes from the Merchant’s terminal to the credit card network, who then sends it to the customer’s bank, the issuing bank. Once the customer’s bank ensures that the customer has the funds, they send the approval back to the credit card network. Then, finally, the Network sends it to the Merchant bank. You can learn about these different banks and the key players in this process in more detail here.
  • Settlement: This is when the payments are cleared and funded. Once the network sends the transaction back to the merchant bank, you will receive your money and your customer is properly charged.
  • Deposit: Now, your customer’s payment has successfully been made and transferred to your merchant account. This means that your funds are accessible and available for use. You’ve now been paid for the services you provided to your customer.

Work with Bank of Merchant

Bank of Merchant makes the seemingly complex process of accepting credit and debit payments easy and painless. Plus, we set-up and customize the system to meet your exact needs while also managing your merchant processing account to ensure it’s thriving. Other businesses try a one-size-fits-all approach. Trust us, our convenient payment solutions will help grow your business!

Contact us today to set up a payment processing plan for your company!