When a customer pays by credit card, either online or through a point of sale, the business owner receives a record of the approved transaction. At the end of the business day, or after another set time, the business owner submits a batch of payment records to their payment provider (eg. Beanstream, TD, First Data).
The payment provider will then submit the record of approved transactions to the Card Scheme (eg. Visa, MasterCard, AMEX).
The Card Scheme will take these approved transactions and credit the payment provider, who will settle the amount to the business owner. (eg. Visa will pay Beanstream, who will pay the business owner).
The Card Scheme will also issue a debit to the issuer (eg. RBC, Bank of America) to charge them for the transaction. Finally, the issuer will post the transaction to the customer’s account.
And there you have it. The payment is approved, cleared and settled. If you are looking for more information on Settlements with Beanstream please check out our support documentation.
Beanstream is Your Partner In Payments.