Credit card processing is the system by which businesses accept payments made using credit or debit cards. When a customer makes a purchase, the card information is securely transmitted to the payment processor, which communicates with the card-issuing bank to verify and authorize the transaction. Once approved, the funds are transferred from the customer's account to the merchant's account, minus any processing fees. This process typically involves several parties, including the merchant, payment processor, acquiring bank, issuing bank, and card networks like Visa or MasterCard.