What is the order of participants in the payment processing workflow?

The payment processing workflow begins with the cardholder, who is the individual initiating the transaction by using their payment card. The cardholder provides their payment details to the merchant, who facilitates the purchase or sale of goods and services. Following this, the merchant transmits the transaction information to the acquirer, which is the financial institution that processes card payments on behalf of the merchant. The acquirer then communicates with the issuer, the financial institution that issued the card to the cardholder, to verify the transaction and approve or decline it based on factors such as available credit or fraud detection measures.

This sequence reflects the actual flow of information and money within the payment processing environment, emphasizing the roles of each participant in ensuring that the transaction can be completed successfully. So, the correct ordering of participants correctly follows the process from the perspective of a transaction starting with the cardholder and moving through the merchant to the acquirer and then to the issuer.