paymentProcessor
A payment processor is a financial service provider that handles the technical processing of electronic payments between a merchant, card networks, and issuing banks. The processor facilitates authorization, funding, and settlement of card transactions, enabling merchants to accept payment methods such as credit and debit cards, ACH transfers, and digital wallets.
In a typical online or point-of-sale transaction, the merchant's system or payment gateway securely collects payment
A payment gateway is related but distinct; it provides the secure channel to transmit data, while the
Integrations can be via APIs, hosted payment pages, or point-of-sale terminals. Companies may offer value-added services
Security and compliance are critical, with PCI-DSS standards, encryption, tokenization, EMV considerations, and anti-fraud tools. Regulatory
Cost structures typically involve interchange fees plus a processor markup, potentially monthly or per-transaction fees, refunds,
Advantages include broader payment acceptance and faster settlement; challenges include compliance burden, fraud risk, and dependency