What exactly happens when a transaction is made?
1. The customer chooses to pays for the goods/services with a card – this is then checked and authorised by the retailer.2. The retailer sends the transaction details to their Merchant Acquirer the bank who acts on their behalf.3. The Merchant Acquirer then forwards the transaction to the customer’s card issuer.4. The customer’s card issuer pays the Merchant Acquirer the retail price but deducts an interchange fee.5. The Merchant Acquirer in turn then pays the retailer the retail price but deducts the Merchant Service Charge.6. The card issuer then debits the customers account.
