A payment processor plays the role as stated in the description. Simply, it processes payments!
Payment processors are the intermediaries between business and financial institutions, connecting merchants, merchant banks, card networks, and others to make card payments possible. The payment processors are the heavy workers of payment transactions- Handling payment processing support and managing credit and debit processing for merchants. They basically move the transaction through the payment processing link. All brick-and-mortar retails that use POS (Point of Sale) for payment acceptance, have their payments processed by payment processors. The role of payment processors in payment processing can be explained by the following scheme: Payment processors run and conduct the technical side of credit card and debit card processing transactions while acquirers take responsibility for the business side of the transaction. Payment processors obtain and process credit or debit card information for transactions, whereas acquiring banks work and mediate between card networks, the issuing bank, and the merchant. Financial intuitions that integrate processors operational efficiency, improve risk management, and increase customer engagement and retention. Payment processors are undoubtedly the intermediaries which release businesses from the complexities of payments transactions and enable substantial benefits and cost savings for businesses.

Acceptance of different payment methods
The payment processor provides the opportunities to offer diverse payment methods to your customers and expand their customer base and consequently revenue stream. The choice of payment methods is the core condition for enhanced customer experience and revenue stream. Payment processors help businesses determine the best mix of payment alternatives to serve their customers. From basic credit and debit cards payments acceptance to alternative payment options, payment processors allow the customers to choose their form of payment, providing businesses with a competitive advantage and frictionless payment acceptance. Before selecting the card payment processor, make sure it accepts ALL major credit and debit card payments, depending on the type of your business! If you run a retail business, make sure your provider is offering you solutions and tools to accept payments online (payment gateway), in-store (POS), and on-the-go (m-POS). It provides you with simple POS credit card terminals to the latest in app-based payment Mobile POS terminals - everything that makes you run your business faster. If you run an e-commerce, make sure your processor is compatible with the latest payment technologies, such as digital wallets, so customers can make a purchase via their smartphones. Always make sure the latest technologies such as near-field communication (NFC) technology for contactless payments or digital wallets for fast and most widely used payment method nowadays.

Integration with different systems for a better business experience
As business efficiency requires the combination of different systems to get more operative and productive results, these systems should coordinate and be in connection with each other. Payment processors now seamlessly integrate with billing, accounting, and CRM systems, providing businesses with a comprehensive overview of their business processes. Digital payments provide better data management for businesses enabling them to make advantageous planning and decision making for better profit revenue. Tools that enable better data analysis and future business forecasting are irreplaceable helpers at securing more profitable decisions.

Flexible fees rate
Payment processors imply different pricing models. Businesses can apply pricing models that can result in significant savings Many third-party payment processors don’t charge an enormous deposit fee for setup. In some cases, payment processing fees can get complicated, since each fee might be composed of several other rates and fees. Nevertheless, in most cases, processors impose common fees, such as flat fees, transaction fees, and incidental fees which are quite profitable for businesses.

Security
High transaction volumes mean the prosperity and development of your business but increase the fraud risks from the payment processing side. Still, payment processors implement the disruptive security solution to guarantee stable payments processing and reduce the cases of frauds resulting in chargebacks. The different tools include PCI-DSS (Payment Card Industry Data Security Standard) compliance, tokenization, 3D Secure V2 and 3D Secure V1, and tokenization. Thus, payment processing is the guarantee of superior customer service, 24/7 troubleshooting, data security assistance, fraud protection, and more. In conclusion, payment processors propositions include extensive payments expertise, reliable customer service, pre-emptive 24/7 troubleshooting, flexible fee rates, and more to assist businesses in increasing revenue and reducing costs through optimized payment processing.