What is the initial step in a typical payment card transaction?

In a typical payment card transaction, the initial step is the customer making a purchase. This step is crucial because it initiates the entire transaction process. When the customer decides to make a purchase, they present their payment card to the retailer. This action sets off a series of events that result in the funds being transferred from the customer's account to the merchant's account.

The customer's action of making a purchase includes selecting goods or services and presenting the card for payment. Once this step is taken, the retailer processes the transaction, which involves several subsequent operations such as checking the card information and obtaining authorization. This is why it is essential to recognize that the act of purchasing is the starting point for the entire transaction.

Understanding the flow of a payment card transaction highlights how critical the initial step is to trigger the subsequent interactions between the retailer, the card network, and the merchant bank.