The Ultimate Guide to Credit Cards

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3. Clearing:

Once the issuers assess the batches, they will deduct interchange fees and send the rest of the remaining amount to the acquirer. This step is called “clearing” because the issuers have to clear the funds to send out. Most of these funds will go to the merchant.

Clearning process

4. Funding:

This is the last step of the process where the merchant finally receives the funds. The acquirer will take out a small portion to cover their expenses for providing a service, and then it will send the rest to the merchant. At this time, your credit card is officially charged for the purchase, and you should see the purchase charged to your account.

Funding process
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Page 9: How Does Credit Card Processing Work?