What Is Credit and Debit Card Processing?


In today’s fast-paced world, customers expect to pay quickly and securely — whether they’re shopping in-store or online. That’s where credit and debit card processing comes in.


What Is Card Processing?

Card processing is the system that allows businesses to accept credit and debit card payments from customers. Behind the scenes, it involves a network of steps that securely transfer funds from the customer’s bank account to your business account.


When a customer swipes, inserts, or taps their card (or uses a mobile wallet), here’s what happens in seconds:

  1. The Card Is Read
    A card reader or point-of-sale (POS) system collects the payment information.
  2. Authorization Is Requested
    The processor sends a request to the cardholder’s bank to check if funds are available.
  3. Transaction Is Approved or Declined
    The bank verifies the details and responds. If approved, the sale goes through.
  4. Funds Are Settled
    At the end of the business day (or a set schedule), the funds are transferred to your merchant account.


Key Players in Card Processing

Several parties work together to complete each transaction:

  • Merchant: That’s you — the business accepting the payment.
  • Customer: The person using a credit or debit card.
  • Payment Processor: The company that handles the transaction and communicates with banks.
  • Card Networks: Visa, Mastercard, Discover, and American Express — they set the rules.
  • Issuing Bank: The customer’s bank.
  • Acquiring Bank: Your business’s bank or merchant account provider.


What Are Processing Fees?

Every transaction involves a small processing fee, typically ranging from 1.5% to 3.5%. This fee covers the cost of the service and is split between the processor, card networks, and banks.


Why It Matters for Your Business

Accepting cards is more than just convenience — it helps you:

  • Increase sales by offering flexible payment options
  • Reduce cash-handling errors and security risks
  • Build trust with modern, secure checkout experiences
  • Get paid faster and more reliably


Ready to Accept Cards?

Whether you're just starting out or upgrading your current system, we can help you choose the right card processing solution and POS system tailored to your business.


Reach out today to learn how to simplify payments, lower your fees, and deliver a better customer experience.