The service that moves money from a buyer's card or bank to the seller, handling authorization, settlement, and a small per-transaction fee.
A payment processor is the plumbing that makes “pay now” work. When a client enters a card, the processor authorizes it, moves the money, and settles it into the seller’s account — taking a small cut per transaction, often around 3% plus a fixed fee for cards. It’s the difference between accepting real payments and mailing invoices you hope get paid.
For sellers, the processor fee is a genuine cost of taking cards, but it’s usually worth it: getting paid instantly and reliably beats chasing checks. Know the difference between the processor’s per-transaction fee and a marketplace’s platform fee — they’re separate charges, and confusing them makes it hard to see what you’re really keeping. ACH bank transfers typically cost far less than card processing, which matters on large invoices.
For buyers, the processor is why paying online feels safe and instant; a legitimate processor also underpins the dispute and buyer-protection mechanisms that let you contest a bad charge.
Don’t confuse the processor fee with the platform fee — one moves the money, the other rents the marketplace. The payout that follows lands via bank rails like an ACH transfer. See how it works end to end in payments and payouts.