Payment by credit

Payment by credit card: How to pay and how to accept payments?

Fast, simple and safe: cashless payments increase visibly! Users abandon cash and prefer to payment by credit card.

The credit card is the most common payment method in recent years. In an increasingly cashless society, payment by credit card is the ideal solution. Quick, safe and simple: a method for making transactions that are appreciated by both buyers and merchants. The credit card is a payment instrument suitable for both in-store payments and online payments.

The in-store payment method is based on the use of a credit card – or a debit card – and a POS payment terminal, or a tool that can read the cards. There are many terminal models: each operator, based on the activity managed and their turnover can choose which POS to buy.

Online payment instead, typical of e-commerce stores, is made directly by the buyer, without the need for any means of acceptance. Any online payment by credit card must be authorized by a series of authentication factors required by the buyer. If the authentication is successful, the payment can be successfully issued.

Credit card: What it is and what data it contains?

The credit card is a plastic card with a magnetic strip and a microchip for making electronic payments. The card contains the bank details of the holder and the credit granted by the bank. With a credit card you can make payments online or in-store and withdraw from ATMs or Post-ATMs. All payments are in “pay later” mode, i.e. with subsequent debit at the time of the transaction. Thanks to the account statement, each user can verify the payments made by credit card.

On the front of the card are recorded all the data of the holder, the identification number of the card and the expiry date with month and year. On the back are security codes, in other words those that guarantee security at the time of the transaction. These codes are two: Card Verification Value (CVV2) and Card Validation Code (CVC2), both consisting of three digits.

Let’s find out in detail what are the codes needed to use a credit card …

Identification number

It is the code with which the credit card is recognized. It consists of 13-16 digits and is embossed on the front of the card;


The Card Verification Value is the card security code. It is generally composed of 3 digits and is printed on the back of the card. This code is required to authenticate the transactions made;


The PIN is a 4-5 digit code provided to the holder by the bank. The PIN code is useful for withdrawing cash at ATMs from the card. Like other payments, the amount withdrawn will also be withdrawn from the user’s account the month following the actual withdrawal;

Owner code

This code is 10-12 digits and is sent privately by the bank to the holder. It is generally delivered by post, along with the PIN. Many banks, especially those that provide well-organized online services, allow the user to personally choose their owner code. When the code is lost, it can be retrieved from a bank statement or through customer service assistance.

Payment by credit card: How does it work?

How does a credit card work? Simple. Credit cards are normally issued by the bank in which the holder has a current account. All payment transactions made with the card are handled by payment circuits.

With credit card payments can be made at merchants with POS, online payments and withdrawals at ATMs. To withdraw money you will need to enter the secret PIN code provided by the bank. It is important to remember that a commission will be applied to each ATM withdrawal. All credit cards have a maximum monthly spending limit, called a ceiling. This roof varies from paper to paper and works like a credit line made available by the bank.

It is important not to confuse the credit card with the debit card (or debit card), also provided by the bank and connected to the current account. The difference between credit card and debit card is simple: paying by credit card, the payment is debited to the account of the holder the following month. It is even possible to pay in installments (after a decision with the bank). Paying by debit card the debit will be immediately deducted from the current account, blocking the transaction in case of insufficient financial availability. With a credit card, in fact you can spend more money than you have on your account (“go in the red”), with an ATM, payment will only be authorized if the amount available is sufficient to cover the amount.

Payment by credit card: How does it happen?

As previously stated, the card can be used to make two types of payments: online or in-store. Both payment methods have specific characteristics and methods of use.

To make a credit card payment in a physical store, it is advisable that the merchant is equipped with a POS terminal. Payment is simple via chip, magnetic strip or NFC technology. The card can be inserted in the POS terminal or simply supported (only if it is equipped with contactless technology). To authorize the credit card transaction, the cardholder must always be present in the store. The credit card must be provided to the operator who, by entering the amount and inserting the card into the terminal, will initiate the payment procedure. The transaction, in fact, can be completed in two ways …


Inserting the credit card in the POS terminal or simply approaching it, the payment is automatic. Two receipts emerge from the POS, one for the merchant and one for the buyer. To authenticate the payment, the cardholder will be asked to put a signature on the receipt for the retailer. The signature issued on the receipt must necessarily coincide with the one on the back of the credit card. With the signing, the payment will be authenticated and recognized as actually authorized;


The PIN has been implemented as a security measure to authorize payments not only with debit cards, but also with credit cards. The authentication procedure is simple. After inserting the card into the terminal, the buyer will be asked to enter a PIN to end the transaction. The PIN is provided by the bank to the customer in a secret way and is known only by the cardholder. After entering the 4-5 digit secret code, the payment will be successfully finalized.

In-store payments with contactless technology deserve their own parenthesis. If the credit card has a contactless function, in fact, no signature or PIN may be required. How? Simple. If the amount to be paid is less than 25 dollars, there will be no need to sign or enter the PIN. Just bring the card close to the POS terminal to authorize and finalize the payment in a few seconds. If the amount exceeds 25 dollars, the authentication methods remain the signature and PIN.

How to pay online with a credit card

After seeing how to pay by credit card in the store, we find out how to do it on the internet.

Paying by credit card online is a systematic and simple operation. Each online store has a checkout section, in which the user can complete his purchase process. There are special payment forms that the buyer must complete. After entering your details and those of your card, a screen will appear that will guarantee the effective transfer of the payment. Each operation will be accompanied by a summary email sent to the user. Let’s find out what data should be entered in the appropriate forms to authenticate the payment …

  • Account holder: Name and surname of the holder shown on the front of the card;
  • Card identification number: 16-digit code printed on the front of the card;
  • Month and year of expiry: Expiry date shown on the front of the card;
  • CVV2 security code: 3-digit security code on the back of the card.

To further increase online security, it is possible to activate the 3D Secure online shopping protection protocol. This protection system provides a password (automatically regenerated by the system) for all online purchases. In other words, every time an online payment is made, the buyer will be asked for the secret password linked to his card. 3d Secure is an important level of security for payment systems.

Credit card: The 3 types

Not all credit cards are the same! There are different types, we find out what they are …

1) Repayment in full

The credit card with a refund is the most common and used. The balance reimbursement provides for the debiting of the expenses on the account of the holder within the 15th day of the month following the actual moment of payment. The charge includes a single solution without interest.

2) Revolving

With the Revolving credit card, payments are debited to the account of the holder in monthly installments. The holder establishes with the bank the value of the minimum repayment installment and the maximum value of the loan. The charge will no longer be made in a single solution in the month following the payment, but will be diluted monthly in tranches set by the holder with the bank.

3) Ad option

The credit card option offers the possibility to the holder to choose whether to pay the charge in full the following month (on balance), or by monthly installments (Revolving). The request will be sent to the holder for any payment made with a card.

Payment by credit card: 3 advantages for merchants

Payment by credit card guarantees clear benefits for both merchants and buyers. Let’s find out what the advantages are for merchants …

1) Increase turnover

Guaranteeing its customers the possibility of paying by credit card is essential to increase their turnover. Many customers prefer electronic payments over cash payments. Having a POS terminal is essential: not only for mandatory POS regulations, but to intercept as many customers as possible.

2) Time optimization

Card payments, compared to cash payments, are much faster. Just insert the card in the POS terminal to make a payment with instant transfer. Simply entering a PIN or a signature will allow you to pay any amount requested. A payment method that is decidedly advantageous in terms of timing compared to cash.

3) Greater security

Paying with a credit card guarantees a high level of security for the transactions. Money transfers take place from one account to another following the strictest privacy measures. Furthermore, not having too much cash in your store is an additional guarantee of security. There is also a high level of security regarding online payments. Each user, before authenticating the payment, is asked for his personal data and those of the card itself. In this way, even e-commerce payments are safe, with less risk of fraud.

Payment by credit card: 3 advantages for buyers

Let’s find out what are the advantages of payment by credit card for buyers …

1) Payment speed

Payment by credit card is quick and easy. In-store transactions take place much faster than cash transactions. Just enter a PIN or a signature to complete the payment. In terms of convenience and speed, the credit card is undoubtedly the payment method most appreciated by users.

2) Financing at your fingertips

The credit card allows the buyer to make payments even when sufficient liquidity is not available in the bank account. The charge is in fact postponed the month following the actual payment. The card is therefore a real loan at the fingertips granted by the banks.

3) Use abroad

A credit card is a very advantageous means of payment for travelers. Changing countries, in fact, it is often necessary to make a currency exchange with cash. On the contrary, payment circuits allow users to pay by credit card wherever they are. It will not be necessary to make a currency exchange and you can make quick and simple payments even abroad.

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