Payment Processor

A payment processor manages the routing of transaction data when you pay at a merchant. When you tap your card, the processor captures the card details, sends an authorisation request to the card network (Visa, Mastercard), which forwards it to the issuing bank, then relays the approval or decline back to the merchant — all within a couple of seconds.

Payment processors also handle settlement: the daily batch process in which funds actually move between banks. Well-known processors include Stripe, Square, Adyen, Worldpay, and PayPal. Some are also acquiring banks; others partner with acquiring banks.

Fraudsters impersonating payment processors or creating look-alike brands can trick merchants into signing fraudulent contracts or routing transactions through unauthorised systems. Consumers sometimes encounter fake payment processor pages during online checkout — always check the URL and look for HTTPS and a legitimate domain before entering card details.