Submitted by Harsha Vichare 11BA25 Sub= International Banking

Credit card

card issued by a financial company. Giving the holder an option to borrow funds, usually at point of sale. Charge interest, usually begins after 1 month after purchase. Borrowing limits are pre-set according to the individual's credit rating.

In the past few years, there has been a great improvement in online commerce around the world. Companies located in different parts of the world are now selling their products or services worldwide. This setup is very convenient to the customers as they can buy anything from the comforts of their home, and sellers too benefit as they can receive payments from anywhere on this earth

1.
2. 3. 4.

Authorization Batching Clearing Funding

The cardholder receives the product.

The cardholder requests a purchase from the merchant. The acquirer authorizes the transaction.
The acquirer sends a request to the issuer to authorize the transaction.

The merchant submits the request to the acquirer.

An authorization code is sent to the acquirer if there is valid credit available.

The merchant stores all the days authorized sales in a batch.

The merchant sends the batch to the acquirer at the end of the day to receive payment.

The card network routes the amount to the acquirer. ( 98.5)

The batch is sent through the card network to request payment from the issuer.

The issuer subtracts its interchange fees, which are shared with the card network, and transfers the amount. ( 100 1.5 )

The card network distributes each transaction to the appropriate issuer.

The cardholder is billed ( -100 )

The acquirer subtracts its discount rate and pays the merchant the remainder. ( 98.5 0.5 )