All eCommerce transactions contain two one of a kind banks—one representing the cardholder, recognised as the issuing bank, and one representing the merchant, known as the acquiring bank. What roles and responsibilities to these two entities play over the course of a transaction?

There are a variety of unique parties involved in a fundamental eCommerce transaction. The process is distinctly complex, despite the fact that it takes only 2-3 seconds on average:

1) Cardholder: Makes a request for a purchase from the merchant, enters and authorizes cardholder information to initiate the transaction

2) Payment Gateway: Forwards transaction information directly from cardholder’s web browser to payment processor

3) Processor: Serves as a facilitator on behalf of the acquirer, forwards transaction information from the payment gateway to the card network

Card Network: Routes the transaction information to the right issuing bank in order to acquire the bank’s authorization

4) Issuer: Receives and verifies the transaction information; if the deposit or debit is available, the issuer sends an authorization code for the transaction returned to the card network

5) Card Network: Receives the authorization approval from the issuing bank, then forwards the authorization to the processor

6) Processor: Receives the issuer’s authorization approval from the card network, then forwards that information to the payment gateway

7) Payment Gateway: Receives the issuer’s authorization approval from the processor, forwards it to the merchant to complete the transaction

8) Merchant: Receives the authorization, fulfills the order, and batches the transaction information alongside with the rest of the day’s sales

9) Acquirer: Receives the batched transactions at the end of the day, then deposits an amount into the merchant’s account equal to the total of the batch, minus relevant charges