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To process a credit card transaction the merchant sends the authorization request to First Data Merchant Services. FDMS then sends the card and purchaser information to the issuing bank, if everything checks out and the cardholder has the balance on the card then the approval is sent back to the merchant.

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Q: How do credit card transactions actually process?
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What's a credit card processing company?

A credit card processing company is a third party in a credit card transaction. They process the transactions on behalf of a business for a fee. This may be especially helpful for a small business that doesn't have a lot of credit card transactions.


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