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Infrastructure · Glossary

Payment processor

A payment processor handles the technical movement of funds between the merchant, acquirer, card network, and issuer on each transaction. Sometimes synonymous with acquirer (Stripe, Square); sometimes separate (a merchant's bank acquirer + Authorize.net gateway).

Why this matters to merchants

Payment processorsits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.