Processor

A processor in the context of payment transactions is a company that facilitates the processing of electronic payments for merchants, card issuers, and acquirers. This type of company plays a critical intermediary role in the financial ecosystem, bridging the gap between various parties involved in a transaction, including consumers, merchants, banks, and credit card networks.

The primary responsibilities of a processor include:

Processors are integral to the efficiency and security of payment processing. They ensure that transactions are executed smoothly and securely, maintaining the trust of all parties in the payment chain. By handling the technical and logistical aspects of payment processing, they allow merchants to focus more on their core business activities while ensuring compliance with the complex web of financial regulations.