How do Card Payments work?

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So I’ve always found it fascinating that I can just swipe my card somewhere and my bank/credit card company takes the amount off my balance, but how does this really work?

I am familiar with service providers(PayPal), but let’s say I’m In a random store and I swipe my card how does that work? Do they have a contract with my bank/cc company that gives them permission to take the money from my account?

The fact that I can swipe my card at places and it is immediately deducted from my bank account is just magical to me, that’s why I’d love some more knowledge!

In: Technology

It is basically an internet connection to your bank. They run the card. Bank says it’s good. Payment goes through and money is deducted from your account. There’s not really a contract between each store and each bank.

Khan academy has a detailed explanation for the whole credit card processing…process. I need to make this a substantial explanation before I just post the link that will answer all if not most of your questions.

https://youtu.be/IPxQQNyCxas