The given diagram depicts how payment by credit card works. Overall, the process contains seven stages, starting with the payment by a consumer using a card and culminating with the payment to a merchant.
First of all, the consumer makes the payment to further get a willing product. Subsequently, the merchant requests authorisation via a credit card organisation. The organisation also requests permission from a consumer’s issuing bank for the payment. Once the bank accepts the transaction, the authorisation is given back to the credit card organisation and then to the merchant, after which the product is sent to the consumer.
After that, the seller sends payment of transaction fees to the credit card organisation in order to get their payment. The merchant’s bank checks the payment, after that, taking out the transaction fees from the transaction funds for providing operations between the consumer and the seller.
Finally, the bank makes the payment to the merchant