A payment processor handles transaction messaging and operational processing between merchants, payment providers, banks and payment networks. It may support authorization, clearing, settlement files and reporting.
What does a processor do?
It validates and routes requests, formats network messages, returns responses, creates clearing records and provides transaction status.
Processor versus gateway
A gateway is the merchant-facing data-transmission layer. A processor handles network transaction processing. One provider can combine both.
Processor versus acquirer
The acquirer holds or sponsors the merchant relationship with card networks. The processor may provide technology and operations for the acquirer.
Which capabilities matter?
Review methods, markets, uptime, reporting, token portability, settlement support, fraud integrations, data access and incident response.
What should be reconciled?
Match processor transactions and fees to merchant settlements, bank deposits, refunds and disputes using stable references.
