Credit card POS may be a facility offered by the bank, which allows you to spend money first and pay it later. You’ll make online or offline payment by Mastercard. It’s actually a contract of the transaction between two parties. Once you apply for a MasterCard, the bank checks what’s your ability to borrow and repay it. If you’re eligible to repay the loan amount after taking the loan from the bank, then the banks issue you a MasterCard. You really borrow the cash from the card-issuing bank by spending the quantity on the MasterCard, which you’ve got to repay in due time.
Credit card parties
Merchant or Seller: They use point of sale (POS) terminals. At this terminal, customers swipe the cardboard and pay to the merchant.
Payment Gateway: This is often the web version of POS. If you are doing online shopping or bill payment, then you pay only through the payment gateway. This authorizes your payment in online shopping. (Payu Money or Very Sign etc).
Payee: It’s the bank or NBFC that pays the merchant against the payment made by MasterCard. The POS terminal provides only the receiving institution.
Association or network: The payment processing network actually fulfills all the formalities associated with the method of payment made by MasterCard. This includes work like process, authorization and collection of payments. Weise, MasterCard, American Express etc. are such networks.
Payment Processors: It’s the method of collecting all the info and sending it to the network. First, the right network is identified in it. For this, the primary four and last four digits of the MasterCard are useful.
What is the process?
When you swipe a MasterCard at a POS terminal, the primary message is shipped to the merchant through a network connection. After this, a message is shipped to the cardboard issuing bank to authorize the payment. After this, the cardboard issuing bank checks whether such a loan amount is out there within the customer’s account.
If the cash is out there within the customer’s charge account, then the bank authorizes this transaction. As soon because the transaction is permitted, the POS terminal shows the approval message and an error is printed. The merchant deposits this stick in the checking account, after which payment arrives in his checking account.
Since multiple transactions happen from one POS terminal throughout the day. You’ll also shop multiple times throughout the day together with your MasterCard. Accordingly, a transaction number is given to tracing every transaction. there’s a fee for every party involved.