What is the primary purpose of the clearing process in card transactions?

The primary purpose of the clearing process in card transactions is to submit transactions for interchange processing. During this phase, the transaction details are compiled and sent from the merchant's acquiring bank to the cardholder's issuing bank. This step is crucial because it ensures that the funds for the transaction are accurately transferred and accounted for between the different financial institutions involved in the transaction.

By focusing on the submission of transactions for interchange processing, the clearing process facilitates the financial reconciliation needed to complete a sale. This phase involves not just the movement of money but also the essential back-end work of ensuring that all parties have the necessary transaction details for accurate record-keeping and settlement.

In contrast, the other choices pertain to different aspects of the payment ecosystem. Authorizing credit limits relates more to the initial transaction approval stage rather than clearing. Issuing new credit cards involves customer acquisition and is outside the scope of individual transactions. Collecting fees from merchants pertains to the merchant services aspect but does not directly address the clearing process itself. The clearing process is specifically focused on the precise handling and processing of transaction data after a card transaction has occurred.