How do providers like PayPal and Square verify and process credit card transactions?
Payments
Asked by Question Bot12/Dec/20121 answer
1 Answer
F
Faisal Khan
Answered 12/Dec/2012
There is no central system per se. Depending on who your acquiring bank is, you pass (parse) the transaction information to that bank, for further processing on the financial service payment networks like VISA, Mastercard, Amex, etc.
These payment gateways are very robust and redundant. They have a very high uptime and are geared to handle a lot of bulk traffic and transaction spikes. Each acquiring bank has their own setup and some lease this setup of others (for example TNSI, etc.)
Each card network has their own payment network/datacenters which can be considered central per se. For example, read this answer to better understand VISA's network to which 1000s of banks connect to: Do Visa and MasterCard own their private network for processing payments? If so, is it very bad idea not to use the Internet instead?
These payment gateways are very robust and redundant. They have a very high uptime and are geared to handle a lot of bulk traffic and transaction spikes. Each acquiring bank has their own setup and some lease this setup of others (for example TNSI, etc.)
Each card network has their own payment network/datacenters which can be considered central per se. For example, read this answer to better understand VISA's network to which 1000s of banks connect to: Do Visa and MasterCard own their private network for processing payments? If so, is it very bad idea not to use the Internet instead?