Payscout makes accepting credit cards very easy. From application setup to approval we have nearly everything automated.Once you actually start processing and accepting credit cards, the behind the scene of what happens is relatively unknown.
There are three things that happen:
The Authorization process does the following:
When the authorization is successful a hold is placed on the funds that reduces the cardholder’s credit line. Those funds from the sale are then placed in a holding area and can be held for as long as 30 days.
The Authorization process in detail is as follows:
Purchaser presents credit card for payment (card can be swiped or submitted online) → Card is authorized By Payscout. →Payscout sends request to brand such as Visa® or MasterCard® (or other brand) → Visa® or MasterCard® (or other brand) sends the request to the Issuing bank → Issuing bank approves or declines the transaction and sends results to Visa® or MasterCard® (or other brand) → Visa® or MasterCard® then tells Payscout if the card is approved or declined → When approved an Authorization number is provided and the purchase is successful.
As lengthy as the authorization process appears, current technology today reduces the entire transaction time with in 1 minute.
Settlement is the process of taking every successful AUTHORIZED transaction and requesting payment. Payscout has the settlement process fully automated for you via a terminal, or by using our gateway as a batch settlement.
During settlement Payscout electronically sends all of your approved transactions to Visa®, MasterCard® (or the brand used) who then send this request to the card holder’s bank. The card holder’s bank then issues a credit to Payscout, allowing us to reimburse you for the settled transaction. At the same time the bank then posts the transaction to the card holder on their monthly statement.