Payment processing is carried out by processor companies. These companies are divided into two groups: back-end and front-end.
Front-end processing companies are connected to card associations and give permission and settlement to merchant banks. Back-end processing companies take payments from front-end companies and transfer money from issuing banks to merchant accounts.
In a matter of seconds, the payment processing company verifies the credibility of the payment and sends the information to the merchant. The transaction is verified, the merchant can proceed with the sale. If the transaction is not verified by the processing company, the merchant will decline the transaction.
