When a merchant accepts a credit card from a customer to complete a sale, the customers card number, credit card information, the merchant ID and the amount received travel through the banks or the processors computer network. The merchant can receive the credit card payment from his customer in three ways: when the customer uses the credit card at the terminal; over the Internet, where either the merchant or the customer keys in the necessary credit card information; or through the phone, where the merchant puts in the information. It is the responsibility of the bank or the processor to check with the corresponding card network, to confirm the cards validity and to see if the necessary funds are the available for the sale.

Subsequently, the customers bank sends the merchant an approval over the network. This formality completes the sale. However, no money will be transferred to the merchants bank account until the full batch that is all the sale completed that day by the merchant - has been transferred to the merchants processor or bank.

At the culmination of the business day, the merchant sends over his batch to the credit card network for necessary processing. The transactions to the credit card network go through the merchant's credit card processor. Each of those transactions is then sent back to the customers bank for debiting. The bank then debits the customers account and transfers the correct funds to the merchant's bank or processor through the Federal Reserve Bank's Automated Clearing House. The bank or the processor collects the funds and sends them to the merchants bank account.