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 associations
- Receives authorization responses from the issuers via the associations and shares them with the gateway
- Receives batches of transactions from the gateway for settlement, sends to the issuers via the associations
- Receives retrieval requests and chargebacks from the issuers via the acquirer
- Sends chargeback representments to the issuer via the acquirer
Also referred to as:
- Third-party processor or third-party payment processor