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This text provides an overview of how electronic payments work in e-commerce. The process involves three stages: authorization, clearing, and settlement. Authorization occurs after a cardholder makes a transaction and authenticates themselves. Information is transmitted and checked between the merchant, acquirer, card scheme, and issuing bank. Once funds are confirmed, the payment is approved. Clearing is the behind-the-scenes activities that occur from when the acquirer sends a message to the card scheme. Settlement is the final stage where the payment is processed.