How Does a Payment Processor Work?

Payment processors enable Merchants to receive debit or Credit Card payments online by providing a connection to an Acquiring Bank. These processors perform many functions such as evaluating whether transactions are valid and approved, using anti-fraud measures to assure that a purchase Transaction is initiated by the source it claims to be. Processors are held to standards and regulations organized by credit card associations. These standards include rules regarding fraud, chargebacks, and identity theft.






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