Payment Processor

A payment processor is a third-party company that handles debit and credit card transactions for a business. This entity is essential in facilitating the electronic movement of money from the cardholder's account to the merchant's banking account. Payment processors are intermediaries that work with various financial institutions, including banks and card networks, to ensure that each transaction is conducted securely and efficiently.

Key functions of a payment processor include:

Payment processors are vital for modern commerce, providing businesses with the necessary tools and services to accept electronic payments, thereby enhancing the customer experience and expanding the business’s ability to operate both domestically and internationally. They streamline payment operations, allowing merchants to focus more on other aspects of their business while trusting that the financial transactions are managed professionally and efficiently.