Payments glossary
What is a payment processor?
A payment processor is a licensed company that moves transaction data between the merchant, the card networks and the banks so a card payment can be authorized and settled.
Processors work with acquiring banks and card networks such as Visa and Mastercard. They also underwrite merchants: they decide which businesses they will accept and on what terms.
Settlement, the actual movement of funds to the merchant's bank account, is handled by the processor and its banking partners.
How it works in Allidian
Allidian is payment software, not a processor. Processing, underwriting and settlement are done by licensed payment providers under your own account with them.