How does a credit card transaction flow?
Sophia Koch
Updated on February 05, 2026
The acquiring bank performs what is known as an interchange for each sale, with the cardholder’s bank. Then the card-issuing bank transfers the sale amount, minus the interchange fee to the acquiring bank. The money is then deposited into the merchant’s account by the acquiring bank, minus a discount fee.
How do you use a data flow diagram?
10 simple steps to draw a data flow diagram online with Lucidchart
- Select a data flow diagram template.
- Name the data flow diagram.
- Add an external entity that starts the process.
- Add a Process to the DFD.
- Add a data store to the diagram.
- Continue to add items to the DFD.
- Add data flow to the DFD.
- Name the data flow.
How do I process a manual credit card transaction?
Manual credit card processing is done by taking an imprint of a customer’s credit card, or by taking down the customer’s card information, and processing the credit card later by phone or Internet.
How does an online credit card transaction work?
User enters credit card information into the application. Credit card information is sent to the Payment Gateway via a secure channel. The Payment Gateway routes the credit card to the appropriate Internet Merchant Account. Internet Merchant Account connects to the Merchant Account for credit card processing.
What is the process of credit card authorization?
Authorization is the process through which a merchant obtains permission from a customer’s card issuing bank to accept the card for payment. Authorization involves assessing the card’s transaction risk and, if approved, reserving the sales amount on the cardholder’s account.
What are the three major data flow approaches?
Approaches for Data Flow Diagrams (DFDs): (a) DFD representations; (b) Explosion approach to DFD development; and (c) Expansion approach to DFD development. A product–service system (PSS) is a combination of products and services to create value for both customers and manufacturers.
When would you use a data flow diagram?
Also known as DFD, Data flow diagrams are used to graphically represent the flow of data in a business information system. DFD describes the processes that are involved in a system to transfer data from the input to the file storage and reports generation. Data flow diagrams can be divided into logical and physical.
When to use a credit card data flow diagram?
Credit Card Approval System Data flow diagram is often used as a preliminary step to create an overview of the Credit Card without going into great detail, which can later be elaborated.it normally consists of overall application dataflow and processes of the Credit Card process.
How to create a credit card transaction flowchart?
Swimlanes highlight the various roles responsible for the Credit Card Transaction process. Edit the template online to customize it according to your needs. You can edit this template on Creately’s Visual Workspace to get started quickly.
How does a transaction flow diagram ( TFD ) work?
Transaction Flow Diagram (TFD) represents a specific business process by using graphic elements (symbols, lines). To create a transaction flow diagram, programs designed specifically to draw flowcharts are particularly well-suited to the task. The top-down method is used for TFA.
What are the symbols in a transaction diagram?
Symbol of unit or department processing the transaction; represent someone or something involved in the transaction. Symbol of flow and direction of data; represent by an arrow. Symbol of flow. Symbol of documents, files and forms; represent carrier of data.
