Cycle

(1)A customer completes a transaction at the merchant POS. POS system then passes the transaction, card, and merchant bank info to the Gateway
(2) The Payment Gateway collects transaction, card, and merchant data from the Gateway and passes it securely to the linked Payment Processor
(3) The Payment Processor collects the Gateway data and identifies the correct Network/Association based on the card type. Processor then routes all the transaction data to the Network.
(4) The Network collects the transaction information and verifies the available balance with the Card Issuer*. In addition to the balance check, the network performs a security check to ensure the card is within normal spending patterns. If the transaction is approved by Card Issuer and passes the security check, the Network passes an affirmative response upstream to the POS and downstream to Card Issuer**. During Settlement***, network collects transaction amount from Card Issuer account and passes it to the Merchant Account.
(5) The Card Issuer is responsible for checking the available balance and passing the verified amount to the Network during settlement
(6) The Merchant Bank receives the value of the transactions less the fees deducted by the Gateway, Processor, and Network.

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