What is a payment processor? Who moves a card payment
By SendPay Business · · 2 min read
A payment processor is the company that carries a card payment's details between the business, the card scheme and the banks. It gets the payment approved or declined in seconds, then makes sure the money is settled to the business later.
Where it sits
- The gateway collects the card details securely at checkout.
- The processor sends them through the card scheme to the customer's card issuer.
- The issuer approves or declines, and the answer comes back the same way.
- Later, the processor and acquirer settle the money to the business.
Processor, gateway, acquirer
The gateway is the front door, the processor moves the messages, and the acquirer is the bank that holds the merchant relationship. Many providers bundle all three, so a business often only deals with one company.
What to ask
The total cost per payment, including fixed fees; how long settlement takes; how chargebacks are handled; and which payment methods and currencies are supported.
Where SendPay fits
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What is an acquiring bank?
The bank that receives card payments for a business.
What is an acquiring bank? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.