What Is A Payment Processor

It accomplishes the payment by relaying the payment.

What is a payment processor.

A payment processor handles credit and debit card transactions for merchants essentially acting as the mediator. What is a payment processor. A payment processor passes along the customer s credit card information to the issuing bank. How does a payment processor work.

Payment processors enable merchants to receive debit or credit card payments online by providing a connection to an acquiring bank. Once the transaction is approved it connects the issuing bank with your merchant account to transfer the funds. In the simplest terms a payment processor is a company that handles transactions between two parties such as a merchant and a customer. They are usually broken down into two types.

Payment processors are the financial institutions that work in the background to provide all the payment processing services used by an online merchant. Payment processors seek approval for a transaction communicate with the. These companies usually have partnerships with other companies that directly deal with consumers or merchants. Payment processors offer useful features that enable online merchants to accept payments store funds disburse payments meet compliance needs and more.

A payment processor manages the credit card transaction process by acting as the mediator between the merchant and the financial institutions involved. In short they are financial platforms that function in the background to offer payment processing services to online sellers. A payment processor is a company authorized to process credit card transactions between buyers and sellers.