This guide is educational only and is not legal, financial, tax, accounting, or compliance advice. Provider rules and program details can change.
The practical overview
A card payment moves through authorization, clearing, and settlement. The terminal or checkout starts the request, but networks, banks, and the processing provider all have distinct roles before funds are available.
What to look for
- Authorization checks whether a transaction can proceed.
- Clearing supplies final transaction detail for inter-party calculation.
- Settlement moves value between participating institutions.
- Merchant funding timing depends on provider and banking terms.
Questions worth asking
Ask where tokenization occurs, how batches close, what appears in the deposit, and which party supports disputes, gateway issues, or equipment.
A responsible next step
Map your in-person and card-not-present channels so each step has a clear owner and support path.