Implementation Guide for Oracle Billing Insight > Payment Processing > About Credit and Debit Card Processing >

Credit and Debit Card Payment Transactions

Figure 10 shows the entities involved in a credit card or debit card payment transaction.

Figure 10. Credit Card Payment Transactions

Because credit and debit card is processing is real-time and not batch-based, the life cycle of credit card is simpler than check processing. Credit and debit card processing typically goes through the following steps:

1. A user enters a credit or debit card number and other card-related information.
2. The card information is sent to the card-issuing bank for authorization. Authorization only guarantees that the money is available at the time of authorization.
3. The merchant issues a settlement request to issuing bank so that the money can be transferred, usually after fulfillment (sending out ordered goods). For bill payments, the biller does not send out ordered goods, so authorization and synchronization are combined into one operation. A credit or debit card payment is settled at the same time it is authorized.