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Abc of Credit Card Processing

29 April, 2011

A credit card is basically a plastic card with a magnetic strip on it, which stores all the data in it. It is used by users to buy products/goods and give their utility bills. The main advantage of it is that you take the product in advance and they will cut it from your credit card with a process.Mostly people don’t know that how the process works behind it, on which it works on.

Mostly people have credit cards and they just know for what purpose it is used and how to swipe the card for the use. Some of the people also know that how all transactions are being done and what is the process behind.


With the rapid growth in technology Credit cards are now being used in every shop, hotels etc. Because of the technology mostly people use internet and by using internet they get the awareness about the credit cards and they are becoming very popular.


To run every thing you must need software. Like if you want to run your laptop the windows installed in the laptop is software to use the laptop. Same is the case with the credit cards .Their is software for credit card processing and credit card processing machines, which are normally seen in the shops. The processing equipment has to verify the data before any transaction.

It uses secure validation software for it which ensures safe transfers of credit card information to one point to another. After all the processing is done then the credit card bills are generated. The bills are then sent to the people who have used this facility at their postal addresses through couriers.


Mostly people are afraid of using credit cards because they say fraud can be easily done through these cards. If you know any other persons information you can activate the accounts. So it’s not easy to use any others card. Your all information is available with the bank and these banks have very strict policies .They cannot give your information to anyone else.

They can’t use your information and cant fraud with you its totally impossible. All your data save in the bank is confidential. The banks guarantees you that all your information with us is secure and will not be used any where else without your own permission. It’s the responsibility of the owner of the card that he protects his own card and avoid from loss of the card.


The credit card is issued by the bank and it’s the banks responsibility that it secures your data from other. In the processing phase, different agencies and different service providers puts their conscious efforts for the processing of the transactions. One person cannot do it and it’s impossible for him to manage and maintain all the data of so many users of credit card.

Like if you buy something from internet means online buying, there are a number of participants involved in it to make a transaction. These are the customer, the merchant, payment gateway, credit card interchange, customer credit card issuer, and the banks of both the buyer and the seller. So these all participants are involved for any e-commerce buying.

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by Gemma Maddock

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