What is the difference between Third Party Processor vs Payment Processor?
Career: Third Party Processor
| Aspect | Third Party Processor | Payment Processor |
|---|---|---|
| Credentials/Certifications | May require PCI compliance, industry-specific certifications | Likewise, PCI compliance, payment industry certifications |
| Work Environment | Handles transactions on behalf of merchants, often in financial or e-commerce sectors | Processes card payments directly, often in retail or online sales |
| Employer/Industry Usage | Used by merchants to outsource payment handling | Used by merchants and financial institutions to facilitate payments |
| Common Search/Comparison | Often compared with Payment Processor |
Third Party Processors act as intermediaries, managing transactions between merchants and payment networks, often providing additional services like fraud prevention. Payment Processors handle the actual transaction processing directly, often integrating with merchant accounts. While both roles require similar certifications and work in the payment industry, Third Party Processors typically offer broader services and act as a bridge between merchants and payment processors.