# Payment Processor

*Banking & Payments — Finicade finance glossary*

A payment processor handles the technical work of authorising and capturing a transaction between merchant, acquirer and network. Modern providers bundle gateway, acquiring and reporting into one relationship, which is why the boundary between processor and acquirer has blurred. Pricing models differ sharply: interchange-plus is transparent, blended rates are simpler and usually more expensive.

**Also known as:** payment gateway, PSP, payment service provider

**Related terms:** [Merchant Acquirer](https://finicade.com/glossary/merchant-acquirer), [Card Network](https://finicade.com/glossary/card-network), [Tokenization](https://finicade.com/glossary/tokenization), [Chargeback](https://finicade.com/glossary/chargeback), [Interchange Fee](https://finicade.com/glossary/interchange-fee)

Source: https://finicade.com/glossary/payment-processor