When a customer pays for products or services with a credit card, the card information is recorded manually (imprinter) or electronically through a credit card terminal and then verified for payment. The process takes 4 stages for completion.

1. Authorization: The card holder pay for goods or services with a credit card. The Merchant submits the transaction to their processor who immedialty verify's the card is good and provides an approval code for sale.
2. Batching: (Usually happens at the end of day) After the above transactions is accepted it is stored in a batch the merchant sends to the Processor
3. Clearing and Settlement: The processor sends each transaction in the batch to the issurer of the credit card holder. The issurer inturn pays the processor for the transaction.
4. Funding: Once the processor has been paid, the merchant is paid less their discount for the cost of accepting credit card. This happens daily or monthly and the merchants account is the debited.

The entire process from Auhtorization to Funding, ususaly takes between 24 to 48 hours.