Transaction Process

Transaction means performance of a commercial business. Here, transaction process starts when the cardholder makes any purchase. When he purchases goods from the merchant than the merchant prepares a sales draft using an electronic machine. It contains card number, cardholder’s name, expiration date of the card, the amount and full signature of the cardholder. The merchant sells the sales draft to the bank and gents the amount on sales draft with an agreed discount rate. An agreed discount rate is called MSF (Merchant service fee). The settlement bank, Master card and Visa card international and reimburse the acquirer. Then the acquirer sends the data through any technical line. The bank charges the issuer and issuer bills its cardholder that ultimately repays the issuer. This is the brief introduction of the transaction process operated by the bank with the cardholder or above all tells us how the cardholder, bank and the merchant are inter-related.