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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.

Want to read more on this topic? Check out our related resources:

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How to Select Payment Gateway for Your eCommerce Store (+5 Best Options)

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eCommerce Glossary

What is Payment Processor?

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