Credit card online payments
In order to understand the online payment systems, it is essential to take account of the major players involved in this chain.

First, we need to have a consumer wishes to purchase some goods from a merchant and to pay with a credit card. Before that, the consumer must open a credit card account with an Issuing Bank who provide them with the card itself.

The merchant must also hold an account with an Acquiring Bank who provides the merchant with recording transactions. Also, it should be payment service provider - credit card company, such as Visa or MasterCard.

The approval or disapproval is transmitted electronically to the shop via the credit card Acquiring Bank. Clearing takes place, usually as an overnight function, where the merchant submits all of its credit card transaction data electronically to its Acquiring Bank. The Acquiring Bank then credits the merchant's account for its transactions. Then, the Acquiring Bank needs to get paid for the transaction, so it sends the transaction data electronically to the credit card company who distribute it to the appropriate to each Issuing Bank.

The final step is Settlement, in which the credit card company collects funds from the Issuing Bank's account and transfers them to the merchant's account with the Acquiring Bank.

After Settlement, the Issuing Bank will present the transactions as an item on the cardholder's monthly statement, and once the cardholder pays the Issuing Bank, the cycle will be complete.