|
lot of money and headaches if a problem occurs. At the back of your credit card is an area for your signature. The store clerk is supposed to compare your
signature at the back of the card with that on the credit sales slip before concluding the transaction. Also if after a couple of months, you forget that
you made the purchase, the credit slip with your signature can be produced by the merchant as proof that you did.
Who else is involved in the transaction?
Beside you and the merchant, there are three other intermediaries involved in the transaction - VISA or MasterCard organization, the acquiring bank that handles the
merchant’s credit card account and the issuing back which handles the credit card holder’s account. The VISA and MasterCard organization serves to ensure the quick, precise and easy flow of information from
|
one party to another.
There are thousands of banks issuing the VISA or MasterCard credit cards. If the VISA or MasterCard organization was removed from the transaction process,
the merchant would have to locate the issuing bank, and proctor the exchange of information and money between the issuing bank and the acquiring bank.
Imagine doing this for the hundreds of customers that visit an establishment each day.
The VISA and Master Card organization routes a merchant's request to the credit holder’s issuing bank. The organization also coordinates the transfer of funds from the issuing bank to the acquiring bank.
The issuing bank maintains the credit card holder’s account, and has up to date information on the account. They also pay for the merchandise purchased by the credit card holder.
The merchant’s bank receives the money for the merchant.
What becomes of my information?
Credit Card organizations (VISA, MasterCard, Discover, and American Express) have developed by-laws, operating regulation amongst other programs to ensure the consistency, dependability and security of the system. Operating regulations require that merchants delete a cardholder’s information once a transaction has been completed.
|
