Overview#The Card Processor which is also known as the Payment Processor is the interface for the Merchant to the Payment Network.
There are typically two types of Card Processor:
In an operation that will usually take a few seconds, the Card Processor will both check the details received by forwarding them to the respective Card Issuer or Payment Network for verification, and also carry out a series of anti-fraud measures against the transaction.
Cardholder Verification Methods including the card’s country of issue and its previous payment history, are also used to gauge the probability of the transaction being approved.
Once the payment processor has received confirmation that the Cardholder Verification Methods have been performed, the information will be relayed back to the Merchant, who will then complete the payment transaction. If Cardholder Verification Methods fail, the payment processor will relay the information to the Merchant, who will then decline the transaction.
The Card Processor do not directly maintain a link to every Card Issuer, but instead they maintain a link to every major card Payment Network. The Payment Network in-turn maintains a link with every Card Issuer that issues their network branded cards.
Card Processor is one member of the The Four-Party Credit Card System