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* Note: Your Internet Merchant Account must use a "credit card
processing network" supported by iTransact. We recommend an
Internet
Merchant Account from Payment Alliance if you do not
already have one.
Credit Card Processing Networks Supported by iTransact:
PAYMENTECH (GENSAR)
, FIRST DATA - CARDNET (CES/FIRST DATA/FDMS)
, FIRST DATA - NABANCO (FDMS SOUTH)
, FIRST DATA - OMAHA (FDR7/ETC7/FDMS TYPE 7)
, FIRST DATA - CANADA
, NDC - ATLANTA EAST PLATFORM (GLOBALPAY/GPS/CNET)
, NOVA
, VITAL (VISANET)
How does credit card processing work?
Understanding
the backend mechanics of how a shopping cart, payment gateway, and an Internet Merchant Account work
together can be a
bit confusing. Below you'll find a detailed explanation of
how the cart, gateway, and merchant account all work together
and why you need all three. Steps 1 - 6 happen in a matter
of seconds while steps 7 and 8 occur daily.

1. Your customer
enters their credit card details and clicks submit. The
Online Store (i.e. CartGenie) sends the encrypted credit
card information to the Payment Gateway (i.e. iTransact).
2. The Payment
Gateway submits the transaction to the Credit Card
Interchange. All parties involved in the credit card
transaction (i.e. processors, acquirers, issuers and so on)
manage the processing, clearing, and settlement of the credit card transaction. This
is also known as Interchange.
3. The Credit Card
Interchange sends the transaction to the customer's credit
card issuing bank to see if the customer has enough funds
available on the card.
4. The Issuing Bank
approves or declines the transaction and sends the
transaction response back to the Credit Card Interchange.
5. The Credit Card
Interchange sends the approve/decline response back to the
Payment Gateway.
6. The Payment
Gateway sends the approve/decline response back to the Online
Store. If approved the order is accepted by the Online
Store. If declined the Online Store displays the
reason for the decline.
7. If the
transaction was approved Settlement occurs. Settlement is
the process in which funds are transferred (after
fulfillment) from the customer's Card Issuing Bank to the
merchants Internet Merchant Account (i.e. Payment Alliance).
This process happens daily.
8. Your Internet
Merchant Account transfers the payment to your normal
Merchant Bank Account and you now have the funds. This
process happens daily.
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