What is the Role of a Payment Processor?

A payment processor is a company that handles all processing between you, the merchant and your customer when a credit card payment is processed.  They are responsible for transmitting and relaying encrypted data between banks.

It is the payment processor’s responsibility to ensure the safety of all data transmitted, confirm if a transaction has been approved or declined, and advise you of the outcome. If a transaction is approved, they also advise your merchant bank to deposit the funds in your account.

Data security is imperative

The payment processor is responsible for encrypting data, transmitting secured data and receiving secured data. This is taken very seriously because there are laws and regulations that apply to all credit card transactions. A reliable payment processor ensures that they operate within these laws and regulations at all times. They also keep up to date with changes and ensure that they are fully compliant at all times. It is the payment processor’s responsibility to keep fraudulent transaction to an absolute minimum at all times.

Payment processors are also responsible for reversing credit card transactions by relaying the encrypted information to relevant parties to ensure that the cardholder is refunded.

In short, the payment processor must communicate transaction, credit card, and banking details to relevant stakeholders safely and securely so that no personal information is leaked or compromised. To do that the payment processor must have very strong internet security systems and software that is updated daily.

Where do you find a payment processor?

If you are considering accepting credit card payments in your business, look for a credit card processing company to provide you with the processing system that will suit your business. Their qualified consultants will discuss your card payment needs with you and give you a solution that will fit perfectly.

No matter what size or type of business you run, you can find the perfect solution. If you want to accept credit card payments face-to-face, you may be supplied with an electronic keypad terminal to swipe credit cards manually. If you are an online trader, you can receive software that integrates with your shopping cart. And if you are a service provider who travels your customers’ premises or a trader who sells products from various markets, you could also benefit from wireless/mobile credit card payment processing terminal or one that integrates with your mobile phone or tablet. Find out what kind of security measures they provide. Are they Payment Card Industry (PCI) compliant? A safe and practical solution would be to find a company that has a proven track record, is an experienced credit card processing company, and provides affordable fees, excellent customer service, and ongoing technical support.

For more information on the role of a payment processor, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.


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