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This video tutorial gives a behind-the-scenes look at how electronic payments work in e-commerce. There are three stages: authorization, clearing, and settlement. Authorization involves cardholder authentication and transmission of a digital message between the merchant, acquirer, card scheme, and issuing bank. Clearing is the period between the acquirer sending a message and the card scheme confirming payment approval. Settlement occurs once funds are available and a message is sent back to the merchant.
