The parties in a single card transaction
A card payment is not one company doing one thing. It is a short relay between five parties, each of which plays a defined role and, in most cases, takes a defined share of the cost.
When you understand who does what, the line items on a merchant statement stop looking arbitrary.
Cardholder
The customer presenting the card, phone or wearable at your counter or checkout page.
Merchant
Your business, which submits the transaction through a terminal, POS system or gateway.
Acquirer / processor
Routes the transaction to the card networks, handles settlement and deposits funds into your bank account.
Card network
Visa, Mastercard, Discover or American Express, which set interchange and network rules.
Issuing bank
The customer's bank, which approves or declines based on funds, risk and verification data.
Authorization: the first two seconds
When the card is tapped, dipped or keyed, your device sends an authorization request containing the amount, the card credentials and verification data. That request reaches the issuing bank through your processor and the card network.
The issuer answers approve or decline and places a hold on the cardholder's available balance. No money has moved yet. An approval is a promise, not a deposit.
Card-present transactions carry stronger verification data than keyed or online ones, which is one reason the same card can cost a different amount to accept depending on how it was entered.
Batching and settlement: the end of the day
At close of business your terminal or POS submits the day's approved transactions as a batch. Settlement is the step where the funds are actually requested from the issuing banks.
A batch that never closes is a common cause of missing deposits. Most modern systems auto-batch at a set time, but it is worth confirming when yours runs and whether it matches your operating hours.
Funding: when the money reaches your bank
Once a batch settles, your processor funds your bank account, typically on the next business day depending on your batch cutoff, your bank and any risk review on the account.
Deposits may arrive as one lump per batch or as a gross deposit with fees debited separately at month end. Which method you are on changes how your bookkeeping reconciles, so it is worth confirming with your provider.
Where cost enters the chain
The cost of accepting a card is made up of interchange set by the issuing bank, assessments set by the card network, and the processor's markup. Only the last of those is negotiable.
Your effective cost also depends on how transactions are run: card-present versus keyed, consumer versus commercial cards, and whether required data is being passed correctly.
BSV Solution reviews your existing statement line by line and explains which portion is fixed and which is markup. Pricing is reviewed individually and remains subject to underwriting approval.
Frequently asked questions
Why was my card approved but not funded?
Approval only holds the funds. Money moves after the batch settles. An unclosed batch is the most common reason an approved sale never funds.
How long do card deposits take?
Most accounts fund on the next business day after batch settlement, though cutoff times, weekends, banking holidays and account reviews can extend it.
Why do some cards cost more to accept?
Interchange varies by card type and how the transaction was entered. Rewards and commercial cards generally carry higher interchange than standard consumer debit.
Can I see exactly what I am paying?
Yes. A statement review breaks out interchange, assessments and processor markup so you can see each layer rather than one blended number.
Want a second opinion on your setup?
Tell us how you take payments today and a BSV Solution specialist will walk through the options with you. Eligibility and processor selection are reviewed individually, subject to underwriting approval.