Danoush Khairkhah of Velocity Merchant Services Presents an Explanation of the Credit Card

Interchange Process

A credit card purchase involves the cooperation of several parties: the consumer or card holder; the merchant or business selling the goods or services; the bank or credit card company that processes the transactions, known as the acquirer; and the credit card network. When a consumer makes a purchase, the verification process allows authorization of the payment for the transaction, which is stored in a cache with other transactions until the merchant sends them to the acquirer requesting payment. Next, the acquirer passes this information to the credit card issuer, who then pays the acquirer, who in turn pays the merchant.

The interchange network consists of all the banks and other financial institutions that issue credit cards. This network connects a particular institution with major credit card providers such as Visa, Discover, and MasterCard. Together the members of the network decide the amount of the fees that merchants pay in order to receive account access, which allows the entire system to work.

About Velocity Merchant Services (VMS):

Headquartered in Illinois and under the leadership of CEO Danoush Khairkhah, VMS has provided services such as credit card and debit card processing, website development, check guarantees, and gift card programs since its establishment in 1998 by Dema Barakat. Velocity Merchant Services caters to professional associations, restaurants, retailers, Internet-based companies, and other businesses. Dema Barakat still owns and operates the company.