In the standard payment processing flow, which entity directly communicates with the card network after the payment gateway?

In the standard payment processing flow, which entity directly communicates with the card network after the payment gateway?

• A. Payment gateway
• B. Processor
• C. Issuing bank
• D. Acquiring bank

Answer: (B)

The main idea is that the processor handles the network communication required to authorize a card payment. After the payment gateway securely collects card data, it passes the information to the processor. The processor then formats an authorization request and transmits it to the card network (such as Visa or Mastercard). The card network routes that request to the issuing bank, which approves or declines and sends the response back through the network to the processor, which then relays it to the gateway and merchant. The acquiring bank is involved in settlement with the merchant, but it does not directly contact the card network for the authorization step.

The main idea is that the processor handles the network communication required to authorize a card payment. After the payment gateway securely collects card data, it passes the information to the processor. The processor then formats an authorization request and transmits it to the card network (such as Visa or Mastercard). The card network routes that request to the issuing bank, which approves or declines and sends the response back through the network to the processor, which then relays it to the gateway and merchant. The acquiring bank is involved in settlement with the merchant, but it does not directly contact the card network for the authorization step.