Payment Processor
A payment processor shares and receives data from the card brands, acquirer, and gateway in order to process a merchant’s transactions.
What Does a Payment Processor Do?
The payment processor acts as the go-between for all other entities involved in a transaction.
- Receives authorization requests from the gateway and submits them to the issuers via the brands
- Receives authorization responses from the issuers via the brands and shares them with the gateway
- Receives batches of transactions from the gateway for settlement, sends to the issuers via the brands
- Receives retrieval requests and chargebacks from the issuers via the acquirer
- Sends chargeback responses to the issuer via the acquirer
Also referred to as:
Third-party processor or third-party payment processor
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