When a credit card system is operating on a user’s cash deposit or other stored credit card funds, it is necessary for a retailer to ask the system if the funds are available for a purchase.
The payments network allows the retailers electronic request to be processed into the financial institution’s credit card monitoring system. As an example, when a person uses an ATM machine to draw funds out of their account, a payments network is working to determine if the user has enough funds in their account for the transaction to be completed.
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