Band 9: The diagram below illustrates the process of payment by credit card. Summarize the information by selecting and reporting the main features, and make comparisons where relevant. Write at least 150 words.

The diagram illustrates how a payment is processed using a credit card.

Overall, the process consists of seven main stages and involves four key participants: the consumer, the merchant, the credit card organisation, and both the consumer’s and merchant’s banks. It begins with a card payment made by the customer and ends with the merchant receiving the funds.

Initially, the consumer pays for goods or services using a credit card at the merchant. Following this, the merchant sends an authorisation request to the credit card organisation, which then forwards the request to the consumer’s issuing bank. After checking the customer’s account, the issuing bank either approves the transaction or rejects it. Once authorisation is given, the approval is sent back through the credit card organisation to the merchant.

As soon as the transaction is authorised, the product is delivered to the consumer. At a later stage, the issuing bank transfers the funds, minus transaction fees, to the merchant’s bank via the credit card organisation. Finally, the merchant receives the payment from their bank, completing the process.