The three main steps in the credit card payments process
When a constituent uses their credit card in an application integrated with Neon Pay, an authorization request is generated by Neon Pay and sent to the constituent’s card network or card issuing bank. Put simply, Neon Pay asks the card network or bank whether the funds are available. This process determines whether a transaction is declined or approved.
If the constituent's card company or bank verifies that the funds are available, they place a hold on the funds, or a capture, and let Neon Pay know. The transaction is now approved in Neon Pay and is marked with the Succeeded status.
The process of transferring funds from the constituent's credit or bank account to Neon Pay is called settlement. Once a transaction settles, the funds are available in your Neon Pay account as part of your balance.