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How does the whole automatic real-time credit card processing thing work?

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How does the whole automatic real-time credit card processing thing work?

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Good question. Here is the scenario: The customer browses your products on your web site. She adds a product to her online shopping cart and proceeds to the checkout page. She enters her name, shipping address and credit card number, and clicks “Submit Purchase.” The credit card information is securely sent to a payment gateway for approval. Once approved, the funds are moved to your merchant bank account.

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