Credit Card Processing


As a matter of fact, Credit Card Processing is an extremely complex process. It involves multiple steps to complete. In general, Credit Card Processing will follow four steps. The merchant bank, the credit card processor, the card networks. Consumer bank plays crucial role in processing credit card. Now a days, Credit cards are in use all over the world. It also plays a key role in our lives. We cannot deny that it made our work very easy.

Moreover, Dealing with technology and managing complex systems is part of modern life. Not all credit card processors offer 24/7  live customer support. But, International Payment Gateway provides you 24/7 customer support. Besides, Credit card transactions will happen in 15 seconds.

First of all,  information passes from the cardholder and flows through the merchant’s bank. Then, credit card networks to the cardholder’s bank. Once that bank approves or denies the transaction. It flows in reverse back through the same chain to the merchant. To clarify, them know if the payment went through.

credit card processing

How Does IPG Credit Card Processing Works ?

IPG Hongkong


The first step in credit card processing happens on the consumer level. When card holder enters transaction details on the payment page. It redirects to the merchant account.In the second step, the merchant accepts and collects the transaction information.

The merchant step can also happen online for card not present transaction. Uniquely, IPG merchants use an online gateway to collect the payment from their customer.

credit card processing


The Credit Card Processing collects that information. It is responsible for sending that to the other stages. It also communicate with the third parties. Importantly, it’s primary role is to send information to the card network.

Thirdly, customer’s card will operate one of the major credit card networks. Once the networks receive the payment information from the processor. Then they pass it to your customer’s bank.

Consumer Bank

The cardholder’s bank then receives the payment request. They verify whether the cardholder has the appropriate funds. Or minimum credit to complete the purchase. The bank may also follow some additional security measures. To verify whether the purchase is legitimate, and not fraudulent.

Importantly, the bank denies the purchase if they deems that there is no fund.

credit card processing


Lastly, if bank accepts at that point, customers accounts will be charged. Then, the transaction amount will deposits into  IPG merchants bank account. IPG charges are very low comparatively others. IPG  settle process on daily, weekly, monthly basis.

Last step, the process is to settle the transaction and release funds from the cardholder bank to the merchants bank.

Benefits Of Credit Card Processing

  • First Of All, IPG is fast and secure. IPG provides multiple ways to the customers.
  • First and foremost IPG is a third party merchant account. Third parties involve in credit card processing.
  • Uniquely, it’s charges are low. It facilitates their customers in an convenient way.
  • Importantly, there is no cancellation fees. We provide 24/7 customer support. IPG do Settle Monthly/Weekly/Daily depends on Volume.
  • We accept all Global Debit, Credit and Prepaid Cards on our Safe & Secure Payment Platform.
  • IPG have most Shopping cart Modules available. Our API is easy to use. It enables merchants to process consumer payments.
  • Last but not least,  PCI, DSS details security requirements for business owners. It stores, process or transmits cardholder data.

Advantage of Credit Card

A credit card has become an indispensable part of our lives, with its ease of use and convenient pay-back options. The discounts, offers, and deals that a credit card offers are unmatched by any other financial products and spell a bonanza for the wise user. However, credit cards can become debt traps if not used correctly, or if you spend more than you can repay when the bill comes around.

1. Easy access to credit:

The biggest advantage of a credit card is its easy access to credit. Credit cards function on a deferred payment basis, which means you get to use your card now and pay for your purchases later. The money used does not go out of your account, thus not denting your bank balance every time you swipe.

2. Building a line of credit

Credit cards offer you the chance to build up a line of credit. This is very important as it allows banks to view an active credit history, based on your card repayments and card usage. Banks and financial institutions often look to credit card usage as a way to gauge a potential loan applicant’s creditworthiness, making your credit card important for a future loans or rental applications.

3. EMI facility

If you plan on making a large purchase and don’t want to sink your savings into it, you can choose to put it on your credit card as a way to defer payment. In addition to this, you can also choose to pay off your purchase in equated monthly installments, ensuring you aren’t paying a lump sum for it and denting your bank balance. Paying through EMI is cheaper than taking out a personal loan to pay for a purchase, such as a television or an expensive refrigerator.

4. Incentives and offers

Most Credit cards come packed with offers and incentives to use your card. These range from cashback to rewards point accumulation each time you swipe your card, which can later be redeemed as air miles or used towards paying your outstanding card dues. Lenders also offer discounts on purchases made through a credit card, such as on flight tickets, holidays, or large purchases, helping you save.

5. Flexible credit

Credit cards come with an interest-free period, which is a period of time during which your outstanding credit is not charged interest. Ranging between 45-60 days, you can avail free, short-term credit if you pay off the entire balance due by your credit card bill payment date. Thus, you can benefit from a credit advance without having to pay the charges associated with having an outstanding balance on your credit card.

6. Record of expenses

A credit card records each purchase made through the card, with a detailed list sent with your monthly credit card statement. This can be used to determine and track your spending and purchases, which could be useful when chalking out a budget or for tax purposes. Lenders also provide instant alerts each time you swipe your card, detailing the amount of credit still available as well as the current outstanding on your card.

7. Purchase protection

Credit cards offer additional protection in the form of insurance for card purchases that might be lost, damaged or stolen. The credit card statement can be used to vouch for the veracity of a claim, if you wish to file one.

How To Use Your Credit Card Right:

To avoid being debt-laden due to unfettered spending on your credit card, keep the below tips in mind:

  • Read the fine print so you’re aware of all the charges and conditions that govern your card.
  • Don’t spend more than you can pay back.
  • Avoid putting daily purchases on your card so that you’re aware of how much you’re spending.
  • Periodically check your credit limit and rein in spending when you’ve crossed 40% of your available credit limit.
  • Choose an EMI option for large purchases put on your card to avoid having to pay interest on outstanding card amounts.
  • Always keep at least 40% of your credit limit for emergencies.
  • Plan your purchases and use your card only for planned purchases. Avoid impulse buys on your credit card.
  • Always try to pay your credit card bills in full each month to avoid the interest charges.
  • Never miss a card payment, as this will result in higher charges and a hefty penalty.
  • Approach the bank if you’ve overspent on your card. They could help you devise a pay-back plan with a fixed rate of interest to avoid you falling deeper into debt.

Use the above tips to avoid the pitfalls of card debt so you can enjoy a stress-free future with your credit card.

 Need Help

Want to start a new business online. Waiting for a merchant account. International Payment Gateway will support you  24/7 with less charges and no cancellation fees . 

Frequently Asked Questions

  • What is credit card processing?

    A credit card processor is a third party company appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks.

  • What are the steps followed for credit card processor?

    In general, Credit Card Processing will follow four steps. The merchant bank, the credit card processor, the card networks. Consumer bank plays crucial role in processing credit card

  • How does online credit card processing work?

    Credit card information is sent to the Payment Gateway via a secure channel. The Payment Gateway routes the credit card to the appropriate Internet Merchant Account. Internet Merchant Account connects to the Merchant Account for credit card processing. The result is passed back to the Gateway and then the application

  • Is it really worth to accept credit cards?

    Well, each business must decide for itself. However, merchants around the world rely on credit card acceptance to: – Increase sales: In general, your customers can and will spend more with a credit card than with cash or checks. – Increase credibility: Consumers recognize that a business that accepts credit cards is a legitimate business, one in whom the credit card associations have “endorsed” by allowing them to participate in the credit card system. – Better customer service: Accepting a credit card is easy and fast, usually more efficient than virtually any other type of payment acceptance. With Orbit Card Services payment services, you can afford this additional credibility and increased sales. There is also the fact that we do not charge a minimum fee, nor do we charge you anything when you do not process transactions in a month.