A credit card transaction occurs when a customer uses their credit card to purchase goods or services. When you swipe or tap your card, the payment information is sent to the merchant's bank, which then communicates with your credit card issuer to verify if you have enough credit available. If approved, the transaction is completed, and the amount is charged to your account. After the transaction, the merchant receives the payment, usually within a few days. You will then see the charge on your credit card statement, which details your spending. It's important to pay off your balance on time to avoid interest charges and maintain a good credit score.