Authorization
The initial verification step where the merchant checks card details against the issuer's database to confirm the card's validity and the cardholder's identity.
Clearing
The process of matching the transaction details with the cardholder's account to verify the balance and ensure the funds are available for the merchant to withdraw.
Settlement
The final stage where the funds are transferred from the cardholder's bank to the merchant's bank account, completing the financial transaction cycle.
Transaction Flow
1. Initiation
2. Authentication
3. Authorization
4. Settlement
The process begins when a customer completes a purchase, triggering a secure payment request to the merchant's payment gateway.
Advanced security protocols verify the customer's identity using biometric data or one-time passwords to prevent unauthorized access.
The transaction is validated against real-time fraud detection algorithms that analyze historical patterns and risk scores.
Once approved, the funds are settled into the merchant's account through the global financial network, completing the cycle.