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What is Payment Processor?

The payment processor is an entity that takes the transaction info from the payment gateway, validates it, processes it, and sends the money to the respective merchant account. It also tells the payment gateway whether the transaction was a success.

Basically, a payment processor is an interface between a payment gateway and merchant account that quickly passes the information between the two. Some of the most popular payment processors are PayPal, Stripe, and Square.

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