Payment Processing

A Payment Processor is a company, contracted by the merchant, to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks. They are responsible for ensuring that:

  1. transaction details are validated, approved, and posted correctly.
  2. funds are transferred from the customer’s account to the merchant’s account.

Payment processors play a critical role in the payment ecosystem as they act as an intermediary between the merchant, the card networks, and the acquiring and issuing banks. They must comply with various regulations and standards, including PCI DSS, to ensure the security and integrity of payment transactions.

Additionally, payment processors often offer a range of services such as payment gateway services, fraud prevention, and reporting tools, which can help merchants manage their payment transactions more efficiently.

However, it’s important for merchants to carefully review the terms and pricing of the payment processor and consider any additional fees or charges that may apply.