When a customer presents a credit card, the payment gateway captures and encrypts the card data and sends an authorization request to the card network, which routes it to the issuing bank. The bank approves or declines the transaction and returns a response. Funds are then settled from the issuing bank through the card network to the merchant's account.

Authorization confirms that a customer's card has sufficient funds and is valid, placing a hold on the amount. Settlement occurs when the merchant captures the authorized transaction and funds are transferred from the issuing bank through the card network to the merchant's bank account, usually within one to two business days.

CSG Payments’ supports pre-authorization (auth/capture) transactions that hold funds before final capture. Declines are returned with processor response codes for handling. Partial authorizations—where only part of the requested amount is approved—are supported on eligible card types, allowing merchants to collect partial payment and request the remainder through another method.

Yes. CSG Payments’ supports Level 2 and Level 3 data processing, which enables merchants to qualify for lower interchange rates on corporate, purchasing, and government card transactions. Passing enhanced transaction data — such as tax amounts, customer codes, and line-item detail — helps B2B and government merchants reduce their overall card processing costs significantly.

CSG Payments provides comprehensive dispute management, including instant notifications when a chargeback is initiated, the ability to upload supporting documentation, and full visibility into dispute status and outcomes. The Risk team manages the dispute lifecycle and notifies merchants of decisions. Chargeback monitoring is also part of our risk management capabilities for acquired merchants.