Payment Processing Credit/Debit Cards (Authorization, Clearing and Settlement Basics)

[@gauravchoudhary1553]

There is always an Indian who explains things in a very easy way.🎉 Thanks bhai 🙏👍

[@NurtureLearning]

Thanks so much Gaurav for your generous comments 💐💐

[@saspadoni]

I work with this in Brazil, but now I have a client who speaks English, so this video helped me a lot to understand the terms in English and now I can explain to them! thank you!

[@NurtureLearning]

Thanks for your comments 🙏🏻. Very glad that, this was helpful.

[@NehaSharma-gx9cf]

@@NurtureLearning can you share the link to \video explaining the various fees involved

[@NurtureLearning]

@@NehaSharma-gx9cf kzbin.info/www/bejne/sHfTlGeNrratZ7M

[@zeeshanwallet7724]

awesome, informative content. More content needed!! Thanks

[@NurtureLearning]

thanks so much for commenting and for the wamth in comment 🙂

[@najma21]

Thanks for explaining it so clearly. I just started working on a debit cards project and this video helped me to understand the basic process.

[@NurtureLearning]

thanks so much for your generous comments 💐

[@kathirt7474]

Easy to understand the process and clear , Thanks 🤝

[@Pheello]

Thanks. I’m busy with a startup in the e-commerce space. This video has aided my comprehension in payment space

[@NurtureLearning]

that's amazing to know, all the very best wishes for your startup 👍🏼👍🏼

[@niyaskadangode6197]

Informative and easy to understand.

[@NurtureLearning]

Glad you think so and thanks for liking and commenting 👍🏼👍🏼

[@sebastianzelechowski8557]

Super simple and clear info, Thanks a lot!

[@NurtureLearning]

thanks for liking and commenting 💐

[@nelsonf.r.3587]

Where can i get a full course on this? Or what are the recommended works i can study?

[@NurtureLearning]

hi, in Udemy there are multiple courses. I have not personally gone through them so can't comment, but generally Udemy has many practical courses. You can search the Topics of interest and enroll www.udemy.com/courses/search/?src=ukw&q=cards

[@nelsonf.r.3587]

​@@NurtureLearningMuch thanks!

[@abellepenye4153]

I say this with the most respect possible. I think there is a slight mistake in the video. Please correct me if I am wrong, I am only here to learn. At 3:20 you can see step 4's description. It says: " Routes data to acquirer" I think that might be wrong because the data is being routed to the issuer. I have learned a lot from this video, so thank you!

[@NurtureLearning]

Wow thanks, you are absolutely right. The text in the flow needs correction, will correct it 🙏🏻🙏🏻

[@عبدالعزيزالمطيري-ب5ظ]

Thanks for your efforts

[@NurtureLearning]

thanks for your comment, and glad you liked the content.

[@Monsaw1]

Well structured and detailed focus video. Thanks so much.

[@NurtureLearning]

thanks so much for liking and commenting...

[@nomaraberto]

great video, thank you!

[@NurtureLearning]

glad you liked it, thanks for the comment.

[@cooldown369]

Awesome ❤❤❤🎉🎉

[@NurtureLearning]

thanks so much for liking and commenting 🙏🏻🙏🏻

[@prashantkuril.6698]

Helpful far banking domain.

[@NurtureLearning]

Thanks Prashant, glad you found it helpful.

[@hemantjadhav1176]

Thanks for this video, pls make a video for "Reconciliation systems"

[@NurtureLearning]

sure, please share which aspect of reconciliation.

[@moturuniharika9605]

Thank you for the very clear information

[@NurtureLearning]

thanks so much for liking and commenting 🌻🌻

[@Pedr0Diniz]

Great video, thank you for the explanation.

[@NurtureLearning]

Glad it was helpful!

[@Samt2b]

Its intersting so how is vertual card create and how do indvusal crates and sell for third person

[@NurtureLearning]

thanks for your comment.

[@ayush21Q3]

Can you share the slide please. Thanks for the content

[@NurtureLearning]

Thanks for your comment, unfortunately I don't have the slides now.

[@abellepenye4153]

Super helpful and informative. Thank you!

[@NurtureLearning]

thanks for commenting, glad you liked it 💐💐

[@mdkawsarkhan5154]

303 has been deducted from my account but still not returning

[@aravindshiva803]

It helped me for my interview. Thanks

[@NurtureLearning]

Glad it helped 💐

[@amalekyen0012]

really helpful, thanks!

[@NurtureLearning]

Glad it was helpful ✅ !

[@gavrielhazony2738]

Thanks!

[@NurtureLearning]

thanks for liking and commenting 🙏🏻🙏🏻

[@rajshree0001]

It's men's when we do payment that time not any fund transfer it's right or no

[@NurtureLearning]

Hi Rajshree, yes it means that the real money transfer happens in the reconciliation process.

[@vishnudeo1981]

Thanks a lot for simple explanation .

[@NurtureLearning]

thanks for liking and commenting 🙏🏻🙏🏻

[@lujean5980]

Thank you for such a clear and informative video! I just have one question: in the authorization stage, why is the acquiring bank involved already? Isn't this step about checking whether the consumer can make the purchase? So why doesn't the POS machine send the data to the issuer directly?

[@NurtureLearning]

Great question, please note that the Merchant has no direct connection with Issuer (the POS can't connect to Issuer directly; imagine if it has to do that then the POS has to have connections with all banks at in place. Instead a router, acquirer here helps). The acquirer bank is the financial institution that has a relationship with the merchant. Acquirer's primary role is to facilitate transactions on behalf of the merchant. When a customer makes a purchase, the merchant forwards the transaction details to the acquirer bank. The acquirer bank then communicates with the payment networks and the issuer to obtain authorization for the transaction, and it ultimately settles the transaction by transferring funds from the cardholder's account to the merchant's account.

[@rajatshukla2605]

super helpful! many thanks!

[@NurtureLearning]

thanks so much for liking and commenting 🌻🌻

[@jairjosafath9693]

very well explained sir 💯💯💯💯

[@NurtureLearning]

thanks so much for liking and commenting 🙏🏻

[@waleednadeem5980]

Some questions: Please inform how are transaction charges paid to the IPS by issuer or acquirer? Are the charges deducted from bank's nostro maintained outside the country where the USD are held?

[@MrAlangari97]

Thank you for sharing this information, But What’s the purpose of clearing and settlement? Why the money is not transferred as soon as the transaction has been authorized? Is there any example for a transaction that has been authorized but cannot be cleared & settled? There is a manual process for some?

[@NurtureLearning]

When the card transaction is done, there are frauds which are possible e.g. lost card (e.g. the card was stolen, in this case the liability is with issuing bank mostly). OR the customer goes for returns and chargebacks (which is the responsibility of merchant; the merchant may not charge/settle OR may refund). For these cases, for accounting checks, and for efficient batch processing settlement is done (and this process is followed). For the chargeback cases there may not be any settlement (in some cases where chargeback is after settlement, there is a refund process).

[@narendarboga7610]

Great n clear explanation..

[@NurtureLearning]

thanks for your comments, and glad you liked it 💐💐

[@martincundins8756]

great summary

[@NurtureLearning]

thanks so much 💐

[@nareshsharma-wv1xb]

Just a question as per your first authorisation diagram. It’s shows once we swipe the card it sends the detail to issuer bank then request goes to master Visa cards. But it should work in this way once a customer swipe its cards at pos the processor send the details to the visa/master network and then request goes to issuer bank.

[@roselyneomasheye9959]

please make a video on direct card routing

[@LexieBryson-h8y]

Brilliant! Can you please share the link to the next part? (processing fees for acquirer and IPS)

[@NurtureLearning]

thanks so much. Here it is kzbin.info/www/bejne/sHfTlGeNrratZ7M

[@LexieBryson-h8y]

@@NurtureLearningthank you!!

[@shyamsundar-jl5hb]

Good explanation sir thank you

[@NurtureLearning]

You're most welcome, thanks for commenting…

[@vivekkumar-ky9bz]

Thank you, very clearly explained!

[@NurtureLearning]

Glad you like it 💐💐

[@ranjanamiglani259]

First step is authentication and not authorisation

[@NurtureLearning]

yes that's correct; but remember CONTEXT.

[@siddharthsingh5829]

Thankyou so much...😊😊😊

[@NurtureLearning]

Thanks so much for liking and commenting.

[@ShriganeshKolhe]

I have the co-oerative bank in India and want to start issuing credit cards. what best companies exist to help out in this case?

[@NurtureLearning]

hi, please reach to Rupay or VISA (Rupay preferred for India). The process at high level is a)Onboarding a client (your co-operative bank) b) setting up an account c) allocating cards. It's more complex then what I mentioned, but Rupay or Visa should be able to guide you (if they see the value).

[@Amandeep-qd9nw]

where is the fees associated with card processing video ?

[@NurtureLearning]

Just added it in comments.

[@prashanthbakka8651]

Timeline for the whole process?

[@NurtureLearning]

hi, depends (because mostly it's batch based), typically done witinin 24 hours but the notice is given to customers as 48-72 hours.

[@dhananjaymitkari3893]

Can you send this ppt to me

[@NurtureLearning]

oh, it's been more than an year, I don't think can find it easily now.

[@ArrenTadipa]

So therefore BSP must have a big responsibility or obligations from money error to the account holder.mas monitor niyo lahat ng mga miyembro sa labas at pasok ng mga bawat transaction why everytime na magkaroon ng conflict at error system under imbistigation parang malibdiba mas silip dito ni BSP ang pagmumulan hanggang babagsakan at mga system error nito somtimes questionable our reason publicly anouncing to Us.

[@NurtureLearning]

Thanks so much, sorry but don't understand the question properly.

[@mdkawsarkhan5154]

no

[@jjchen6360]

amazing video! Thank you!

[@NurtureLearning]

thanks for commenting, glad you liked it.