howccswork

How credit cards work
When a card is swiped information is sent through a gateway
From the gateway the request is sent to the Merchant's Bank(B)
From B the request is sent through the Credit Card Network to the cardholder's issuing bank(I)
I either approves or denies the request and the information is sent in reverse.
If the transaction is approved, I sends the funds to B who approves the transaction for the banker.
At each point a small percentage is charged so the merchant receives less than full price.
I then charges I the full amount.