Though payment through e-credit card is the most popular way of online purchasing, there are very few who know about how e-credit card transaction exactly works. Payment gateway is the key difference involved in using e-credit card, as compared to traditional credit card swiping process. Although, the process of online credit card transaction is easy to follow, customer often commits minute mistakes, which lead them to troublesome situations. Following is the list of steps that will help you understanding how the e-credit card transactions exactly works-

• In initial stage, customer selects the service or product he wants to avail out of all available on the website. He places an order on desired website by entering his credit card number. This entire process takes place on highly secure website of the store, which offers online payment services. All the order details entered by customer are retrieved by the system and billing information is generated, which is forwarded to the payment gateway for further processing.

• Payment gateway accumulates the crucial information and forwards it to the bank that is involved in the merchant account transaction. The merchant bank sends these details to customer’s bank for transaction authentication. After this, credit card bank forwards a secret response code, which is either to approve the transaction or to deny it. This code is also required, if they need to explain the reasons of transaction denial.

• During this stage, merchant bank forwards the details of e-credit card transaction to payment gateway. In case it is approved, the funds are deposited to merchant account in the stipulated time of online transaction.

• At the final stage, payment gateway completes the process by forwarding all the vital details of transaction to online store. The message immediately get displayed on the monitor who informs customer whether his transaction is successful or denied. Customer can access the transaction statement that gives him details like current account balance and charges incurred during the transaction.

Above details will surely help you in knowing how e-credit card exactly works and various basic elements involved in transferring funds from their bank account to merchant account.