--- title: A Guide to Payment Processors description: How does credit card processing work? The answer doesn't have to be complicated once you know about all the payment processors involved. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-middlemen.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. Get time back and spend it with furry patients.](https://www2.payjunction.com/payment-processing-veterinarians) - [Dental Simplify patient payments with multiple means of collection at your dental practice. Meet patient expectations and elevate the payment experience.](https://www2.payjunction.com/payment-processing-dentists) - [Auto Dealer Manage dealership payments by department, brand and location. Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # A Guide to Payment Processors ![A Guide to Payment Processors](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-middlemen.svg) [![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=48&height=48&name=Ursula_Librizzi.jpg) Ursula Librizzi](https://blog.payjunction.com/author/ursula-librizzi) 6/30/2016 Understanding all the parties that work together to process a single transaction is not as straightforward as you may think. Between you and your customer are the payment processing providers required to successfully run transactions. Who you choose to work with can significantly impact your business's efficiency and overall bottom line. So, how does credit card processing work? These are the middlemen involved in credit card processing: ## Card Associations Card Associations are the companies that create the credit card brands (Visa, MasterCard, Discover and Amex). They set rules, such as chargebacks, and create and manage Interchange. Card Associations do not directly work with businesses; they are part of the network responsible for the back-end functionality of transactions. ## Merchant Account Providers Merchant Account Providers oversee the sales and marketing of the products and services used to process transactions. Providers work directly with businesses and are facilitators between the Card Association’s network and your business's bank account. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## Payment Processors Technically speaking, Payment Processors are the technical glue that handle the transmission of transactions. They maintain the computer network that facilitates communications between your Merchant Account Provider and the banks. Processors do not directly work with businesses. They are chosen by your provider’s bank. ## Payment Gateway Payment gateways are systems that facilitate the transfer of information between a payment portal and a processor, making it easier to process transactions. They typically store records of all transactions and automate advanced features like recurring billing and batching. Gateways can work directly with businesses or through a credit card processing provider. ## Payment Facilitators Facilitators have one [merchant account](https://blog.payjunction.com/merchant-account/) they lend out for businesses to use. They typically do not directly deposit funds into a business's bank accounts, but will if requested. Facilitators offer an alternative option for small businesses that are just getting started or are processing low volume. ## How to Navigate the Credit Card Processing Landscape Every middleman benefits when a card is processed. The design makes your business run more efficiently, but you pay a markup for each added payment processor providing a service. Steer clear of the complexity and expense by choosing an all-in-one solution: one bill, one point of contact, and one support center. Although some companies offer these end-to-end services, they are rare. Keep an eye out for an integrated solution from an all-in-one provider to ensure smooth, efficient and low-cost credit card processing for your business. ## Remove your Payment Gateway bill. [![LEARN ABOUT ALL-IN-ONE OPTIONS](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/635739/2b5a75c6-72de-435a-9380-a574eca159cb.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/635739/2b5a75c6-72de-435a-9380-a574eca159cb) Do you have an all-in-one Merchant Account Provider? Where do your payment processors fall in the maze? Start a conversation in the comments below! [Merchant Account](https://blog.payjunction.com/topic/merchant-account) --- ##### [![Minimize Credit Card Processing Fees With These 3 Tips](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-fees.svg) Minimize Credit Card Processing Fees With These 3 Tips](https://blog.payjunction.com/credit-card-processing-fees) ##### [![How to Pick the Best Credit Card Processing Rate Plan](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/best-credit-card-processing-plan.svg) How to Pick the Best Credit Card Processing Rate Plan](https://blog.payjunction.com/best-credit-card-processing-plan) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![Credit Card Processors vs. Merchant Service Providers](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processors.svg) Credit Card Processors vs. Merchant Service Providers It’s very likely you looked at the title of this post and thought, “Those are different?” The general public uses these terms interchangeably, and without extensive knowledge of the payments industry, it makes sense to do so.](https://blog.payjunction.com/credit-card-processors) ## [![Credit Card Processing Agreement Form: 3 Tips to Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-agreement-form.svg) Credit Card Processing Agreement Form: 3 Tips to Know A credit card processing agreement form can hide terms and omit specific rates that could do significant financial harm to your business if unaddressed.](https://blog.payjunction.com/credit-card-processing-agreement-form) ## [![What Is EMV Credit Card Processing?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-credit-card-processing.svg) What Is EMV Credit Card Processing? EMV credit card processing entails a series of steps to authenticate a payment by ‘dipping’ or ‘inserting’ an EMV-chip card. To correctly process an EMV credit card, a level-3 EMV certified card reader is required.](https://blog.payjunction.com/emv-credit-card-processing) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. Get Email Updates GO Thank you for subscribing! PayJunction is a Level 1 PCI Compliant Provider. PayJunction is a registered ISO of PNC Bank, N.A., Pittsburgh, PA. © 2026 PayJunction. All rights reserved. [Privacy Policy](https://support.payjunction.com/hc/en-us/articles/211053648) and [Terms of Use](https://support.payjunction.com/hc/en-us/articles/211053628). ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ursula Librizzi" }, "dateModified" : "2023-03-09", "datePublished" : "2016-06-30", "description" : "How does credit card processing work? 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