How Card Payments Work – Step by Step
Every card transaction might feel instant, but behind the tap or swipe lies a finely tuned orchestration of players and data. Here’s how it works, step by step:
1. The Purchase
A customer taps, swipes, or enters their card details to pay a merchant. The payment request begins its journey through the network.
2. The Gateway
The merchant’s payment gateway encrypts the transaction data and securely passes it to the acquirer, the financial institution that supports the merchant.
3. The Acquirer
The acquirer forwards the request to the relevant card scheme (like Mastercard, Visa, or Discover), which acts as the global network connecting acquirers and issuers.
4. The Scheme & Issuer
The scheme routes the request to the issuer, the bank or regulated entity that issued the customer’s card. The issuer checks for available funds, verifies the transaction against fraud systems, and sends an approval or decline back through the same path.
5. Authorisation & Settlement
Once approved, the merchant receives confirmation within seconds. Funds are later settled, moving from the issuer to the acquirer, and finally into the merchant’s account.
Through acting as issuer, processor, and acquirer within one API-driven platform, Monavate simplifies this entire chain. Monavate makes complex card payments feel effortless, fast, compliant, and fully connected.