Credit Card Process

At TTUHSC, credit card transactions are normally processed through one of two platforms, point-of-sale (credit card terminal) and e-Commerce (TouchNet; online). The entire process, from the time the card is swiped until a receipt is produced, takes two to three seconds to complete. The transaction process can be broken down into two stages, Authorization and Clearing/Settlement.

Authorization

• The cardholder presents their credit card for payment.
• After swiping their credit card on a point of sale (POS) terminal, the customer’s credit card details are sent to Global Payments (credit card processor) via a dedicated phone line.
• Global Payments forwards the credit card details to the credit card network (i.e. - Visa, MasterCard, Discover and American Express).
• The credit card network clears the payment and requests payment authorization from the issuing bank.

• The issuing bank validates the credit card number, checks the amount of available funds, matches the billing address to the one on file and validates the CVV number.
• The issuing bank approves or declines the transaction and sends back the appropriate response to the merchant through the same channels: credit card network and Global Payments.
• The credit card terminal produces a receipt, which the cardholder signs to complete the authorization process. (Note: the credit card terminal will collect all approved authorizations to be processed in a “batch” at the end of the day).

Clearing/Settlement

• At the end of each business day, TTUHSC departments should settle credit card terminals, which will send the approved authorizations in a batch to Global Payments.
• For MasterCard, Visa, and Discover transactions:
  • Global payments routes the batched information to the cardholder's bank.
  • The cardholder's bank then sends the funds to Global Payments.
  • Global Payments funds the TTUHSC bank account.
• For American Express transactions:
  • Global Payments routes the batched information to American Express.
  • American Express then routes the payment to the cardholder's bank. Global Payments funds the TTUHSC bank account.
  • The cardholder's bank sends the funds to American Express.
  • American Express funds the TTUHSC bank account.

Note: In general MasterCard, Visa, and Discover transactions post to the TTUHSC bank account within 2 business days. American Express payments post within 3-4 business days.