How do stores and online murchants get paid when someone uses a credit card?

Lets say if you go to a grocery store, and use your credit card, how does the store convert that credit to cash currency. After you use your credit card, does the credit company send a check to that store for that amount, or does the credit card company send the amount after you paid that amount on your bill. I was just carious.|||The store or other merchant is paid by a transfer of electronic funds to an account at a bank that the credit card deals with. This is done the same day. If you have a refund the credit card company takes away from that account and places the amount against your bill. This is done electronically.





If you have a dispute with the merchant things work slower but once resolved then either you get money credited to your credit card account or the store keeps their money.





The credit card company keeps a small percentage of the amount of the sale so the vendors (merchants) do not get all the amount of the sale price if a credit card is used.





The credit card company usually pays the vendors quickly and waits for you to pay your bill and that's why you pay such nice high interest charges on your outstanding balances. That's really how the credit card companies make most of their money.|||the credit card company pays them|||it sends you a bill plus a % of it as a fee that the credit card company gets|||I presume that the retailers have accounts with the banks your card is used for, and that you transact money to thier accounts.


That process must be detected by the credit card banks which then mean that they charge you and send you your bill for using their money and how much of their money you pay back.





Sabre|||The store gets it directly out of your account from the bank. It costs the store a fee for this, about 2 % on debit, and 3% on credit. This is assuming you use your debit card. If it is a credit card only, the card company pays the store.|||Also to above answers, Plastic is all handled electronically, with no actual cash or checks to get all tangled and muddled. Its part of the burgeoning 'no-cash' economy . Its been a boon for our economy and is one of the aids to the Fed's 'managing' the economy, as billions of $ can be infused into and out of the money supply.|||i think this should answer your question perfectly...


it shows pictures (modeling merchant, acquiring bank, issuing bank, etc)





http://virtualschool.edu/mon/ElectronicProperty/klamond/Overvw.htm