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Outlines the ubiquity of card payments in modern transactions, from small purchases to large expenses. This chapter sets the scene for understanding the complex processes behind every card transaction, involving multiple stakeholders from the moment a card is tapped or swiped at a merchant's terminal.

Describes the initial phase of a card transaction, where the customer's action at a merchant's point-of-sale terminal triggers a series of communications across payment gateways, card networks, and issuing banks to authorize the transaction.

Explains how the transaction details are routed from the merchant to the customer's issuing bank via the payment gateway and card network. The issuing bank's role in verifying transaction feasibility based on the customer's balance or credit limit, concluding with the authorization code's issuance, is highlighted.

Delves into the settlement phase, detailing how funds are transferred from the customer's issuing bank to the merchant's acquiring bank, a process that involves batch transactions and can take 1-2 business days, including fraud verification checks.

Breaks down the distribution of transaction fees among the stakeholders, with a focus on interchange fees, acquiring bank fees, and card network fees. It illustrates how these fees affect the final amount received by the merchant from a typical $100 transaction.

Introduces the role of payment orchestration platforms in managing the complex routing of transaction information and funds between all parties involved, ensuring smooth transaction processes.

Highlights the rapid advancements in payment technology, from traditional cash and cards to mobile wallets, and touches on future opportunities in digital banking, rewards programs, fraud prevention, and cross-border payments.

Summarizes the intricacies of card payment systems and the importance of understanding these processes for anyone looking to innovate in the payment product space. It emphasizes the continuous evolution of payment technologies and the opportunities it presents.