At Evertec, we understand that managing millions of daily transactions is not just an operation—it’s a vital strategy. That’s why we’ve created this quick guide to break down the heart of every payment: issuer processing, and show how it can become your greatest competitive advantage.
1. The start of the transaction:
It all begins with the customer. Whether they’re shopping in a physical store, inserting their card into a point-of-sale (POS) terminal, or making an online purchase on an e-commerce platform, the first step is presenting the card.
At this moment, the terminal or platform captures the essential information: card data (number, expiration date, etc.) and the exact purchase amount. This information is the starting point for a series of invisible but critical processes.
2. The journey to the acquirer:
Once captured, the transaction information begins a secure and encrypted journey. It leaves the POS terminal or web platform and heads to the acquirer.
What is the acquirer? It’s the bank or payment processing company that has the commercial relationship with the merchant. Its main role is to receive the payment request, verify its basic legitimacy (for example, that the merchant is authorized to accept that card), and then act as an intermediary to send this information to the card network.
3. The card network connects:
Card networks like Visa, Mastercard, or American Express are the giants that connect thousands of banks and millions of merchants worldwide. Their role is fundamental: they act as a vital bridge for information.
Once the card network receives the request from the acquirer, its task is to identify which bank or institution the card belongs to. Once identified, the request is precisely routed to the card issuer—which, in this case, is your institution.
4. The heart of the operation: Issuer Processing
This is the decisive moment and the epicenter of Evertec’s capabilities. When the payment request reaches your institution (the card issuer), our issuer processing systems spring into action. Within milliseconds, a series of critical and sophisticated checks are performed:
- Card validity and status: The system checks whether the card is active, hasn’t been reported lost or stolen, and has no security blocks.
- Funds/credit availability: It instantly verifies whether the customer has sufficient funds in their debit account or available credit to cover the purchase amount.
- Advanced fraud detection: This is where Evertec’s technology truly shines. Our algorithms analyze spending patterns, location, transaction history, and other factors in real time. This proactive detection is crucial for identifying and blocking suspicious activity before it results in significant losses for your institution.
- Accurate data reconciliation: Ensures that all transaction data (amount, merchant, etc.) matches and is in order for proper settlement later.
5. Optimized approval and settlement:
If all issuer processing checks are successful, your institution (with Evertec’s support) sends back an “approved” response. This approval travels back through the card network, to the acquirer, and finally to the POS terminal or website. That’s why the customer sees the “approved” message in just seconds.
Afterward, the settlement process begins, where funds are transferred from the issuer to the acquirer, and then to the merchant. Our systems ensure that this fund transfer process is efficient and accurate, making sure the money reaches its final destination without issues
Conclusion
simple gesture lies a sophisticated technological infrastructure working tirelessly.
At Evertec, our issuer processing solution doesn’t just approve transactions—it transforms operational complexity into a tangible strategic advantage for your institution. We deliver:
- Smooth and secure transactions: For a superior customer experience.
- Superior operational efficiency: Optimizing your internal processes and reducing costs.
- Greater control and risk reduction: Thanks to advanced fraud detection and precise data reconciliation.
Discover how Evertec empowers the way your customers pay, maximizing the management of your issuer portfolio and ensuring your business’s profitability.