Sales to customers who use bank credit card such as master and visa are usually recorded by who?

 

Sales to customers who use bank credit card such as mastercard and visa are usually recorded by who?

Sales to customers who use credit cards

Credit Card Sales Recording

Sales made to customers who use bank credit cards such as Mastercard and Visa are typically recorded by the merchant or the business that is making the sale. When a customer makes a purchase using a credit card, the transaction details are processed electronically through a payment gateway or a point-of-sale (POS) system.

The merchant's POS system captures the necessary information from the credit card, such as the card number, expiration date, and the amount of the transaction. This information is then securely transmitted to the merchant's acquiring bank or payment processor for authorization.

The acquiring bank or payment processor communicates with the customer's credit card issuer (e.g., Mastercard or Visa) to verify the transaction and ensure that the customer has sufficient credit available. Once the transaction is approved, the acquiring bank or payment processor transfers the funds from the customer's credit card account to the merchant's account.

The merchant

The merchant is responsible for recording the sale in their financial records, including details such as the date of the sale, the amount, and any applicable taxes or fees. These records are important for accounting purposes, inventory management, and tax reporting.

It's worth noting that there may be variations in the exact process depending on the specific payment system and the arrangements made by the merchant with their acquiring bank or payment processor.