Payment transactions occur in a matter of seconds. We can easily swipe our credit card or touch to pay, and there’s an instant exchange of value. But it’s not as simple as it seems. Behind every digital transaction is an intricate web of processes that enables nearly $2 trillion in payment volume. By privacy.com.
When a consumer swipes their card, the merchant’s bank will send out a request for authorization via the payment network. The card company then runs payment details through a variety of fraud-protection tools to validate the information.
In thins article you will be able to learn more about:
- Where credit card purchases begin and who is involved
- How banks and credit card companies clear and settle payments
- Security gaps along the payment transaction process
- Virtual cards create a secure and efficient payment ecosystem
If the consumer is using a debit card, the network will have to verify that enough funds are available to complete the transaction. For credit cards, different rules will apply based on the consumer’s available credit or predetermined spending limits. Once the consumer’s account details are verified, the payment network is given the okay to route approval to the merchant’s bank. At this stage, payment is guaranteed.
At Privacy, they provide virtual cards that allow consumers to have greater control over their spending. Consumers start by opening a number of virtual cards to manage everyday purchases or subscription spending. If fraud is detected or a merchant places a charge without permission, consumers can pause or stop transactions on their virtual card at any time.
Unlike standard credit cards, virtual cards use unique card numbers, which can be turned off or limited in real time. These features allow the consumer to actively mitigate security gaps that can occur throughout the payment transaction process. Interesting read!
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