accepting credit card payments

Credit cards are one of the most popular forms of payment in today’s world. It’s convenient, fast, and secure. But how does credit card processing actually work? In this blog post, we’ll go over the ins and outs of accepting payments, credit card processing, cash discounting, traditional processing, and surcharging.

How does credit card processing work?

 Credit card processing is the process of taking payments from customers using credit cards. The process begins when a customer swipes their card through a terminal or enters their information online. The terminal or website sends the customer’s information to the merchant’s processor. The processor then sends the customer’s information to the card issuer, who verifies the information and approves the transaction. The processor then sends the approval information back to the merchant, and the transaction is complete.

Cash Discount Processing

Cash discounting is a way for merchants to discount their prices when a customer pays with cash. Customers usually receive an incentive to encourage them to use cash instead of credit or debit cards.

Traditional Processing

Traditional processing, also known as batch processing, is when a merchant stores all of their customers’ credit card information in a processor system. This information is then used to process transactions. Businesses with a large number of customers often use this method to save time and money.


Surcharging, also known as cashless convenience fees, is when a merchant charges customers an extra fee when they pay with a credit or debit card. This is done to offset the cost of processing the transaction. Merchants must note that not all countries allow this, and they must comply with applicable regulations and laws.


Credit card processing is a complex process, but understanding the basics can help merchants make sure they’re accepting payments correctly. Merchants can use cash discounting, traditional processing, and surcharging to save time and money.