How Ecommerce Works

The credit card payment process consists of two phases: authorization (determining whether payment information is valid and funds are available on the customer's credit card) and settlement (the transfer of funds into the merchant's account).

Authorization

Steps 1-8 in the diagram represent the authorization phase. Authorize.Net routes the payment details to the credit card networks on behalf of the merchant, then returns the results—approved or declined.

Settlement/Funding

Step 9 is the settlement phase, sometimes referred to as funding. The customer's credit card issuing bank sends the appropriate funds for the transaction to the merchant's bank. The bank then deposits the funds into the merchant's bank account, typically within two to four business days.

For a more detailed description of the diagram, please visit www.authorize.net/resources/howitworksdiagram

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