Traditional Credit Card Processing

Credit card processing is nothing new. Every time you go to the store, you hand your credit card to a cashier that quickly scans your card through a little box or the register. The credit card and Point of Sale (POS) information is transmitted to a credit card clearing center. This clearing center determines the validity of the account by number, address, zip code and available credit limit. An "approval" or "decline" message is sent back to the merchant`s machine.