What does a payment processor do?

A payment processor is a vendor businesses use to manage the logistics of accepting card payments. It shuttles card data from wherever customers tap, swipe or enter their card details to the payment networks — such as Visa, Mastercard, American Express and Discover — and banks involved in the transaction.

Do payment processors accept credit cards?

Some payment processors also take electronic checks (echecks) and ACH payments, but not all. Many that do offer the service do so at an additional cost. Payment gateways also accept credit cards and debit cards, either by swiping or by using a digital wallet.

What does a credit card processor do?

Processors are held to standards and regulations organized by credit card associations. These standards include rules regarding fraud, chargebacks, and identity theft. By communicating between two banking facilities, a payment processor can determine whether there’s enough credit in an account for a transaction to happen.

Do payment processors offer PCI compliance services?

PCI compliance is complex and depends on various factors. Some payment processors offer PCI compliance tools and assistance to their merchants. The type of offerings can include security checklists, hands-on help, breach coverage and more.