First the merchant slides a customer’s credit or debit card through the PharamcyMerchantAccounts.com swipe terminal and enters in the amount of the sales. The terminal will then 800 number or use the internet to connect to a processor to authorize the amount of the transaction. When connected, the terminal will send the credit card information and amount of the purchase to the processor.

The processor will then pass that information onto the issuing bank that issued the card holders credit card. The issuing bank will then check the validity of the card and see if the requested amount is available. If the transaction is approved bank will set aside the amount of the purchase for the merchant and debit the cardholders card for the full amount of the transaction
The issuing bank will send back either an approval number or a decline message back to the processor and this information is immediately sent to the merchant’s terminal and then the card holder signs the credit card recipe on all approved transactions.

The final step of the card transaction takes place when the merchant “settles” (batches-out) the credit card terminal. This step takes place at the end of each business day and can be done either manually or automatically if the merchant chooses to have their terminal programmed to do so. Once the settlement process is initiated the funds will be transferred from the card issuing bank the settlement of funds to the merchant will electronically deposit them into the merchant's checking account on a daily bases with two days in arrears.