The present invention provides a system and method for establishing an authorization process and real time settlement of card based payment transactions between an acquirer 113 and a seller 120 through an issuer 112 via payment networks 111. The acquirer 113 undergoes an authorization process for accepting card payments that involves sending an authorization request (114a, 114b, 114c) and receiving an authorization response (115a, 115b, 115c) for card transactions between the acquirer 113, the payment network 111, the issuer 112, and the seller 120, where the authorization response (115a, 115b, 115c) is an approval or decline of authorization for the seller 120 to perform card transactions based on confirmation on real time settlement. Once the card payment transaction is authorized by the issuer 112, the acquirer 113 involves verifying whether the seller 120 is enrolled for a real time settlement and if it is found that the seller 120 is enrolled for the real time settlement, the acquirer 113 pays the seller 120 instantly after deducting the interchange fee on real time. Thus, the required fund is transferred to the seller 120 in accordance with the real time basis. Hence, the method of establishing a low adoption rate of card based payment transactions that includes the authorization process and the real time settlement in accordance with some embodiments of the present invention are disclosed.

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