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A payment processor is a company (often a third party) appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks. They are usually broken down into two types: front-end and back-end.Front-end processors have connections to various card associations and supply authorization and settlement services to the merchant banks’ merchants.

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  • A payment processor is a company (often a third party) appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks. They are usually broken down into two types: front-end and back-end.Front-end processors have connections to various card associations and supply authorization and settlement services to the merchant banks’ merchants.
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