Payment Processor
A payment processor is a service that facilitates electronic transactions between merchants and customers by handling the authorization, processing, and settlement of payments. It acts as an intermediary between the merchant's website or app, the customer's bank, and the payment networks (like Visa or Mastercard) to securely transfer funds. Common examples include Stripe, PayPal, and Square, which provide APIs and tools for developers to integrate payment functionality into applications.
Developers should learn and use payment processors when building e-commerce platforms, subscription services, or any application that requires handling monetary transactions, as they simplify compliance with financial regulations (like PCI DSS) and reduce the complexity of dealing with multiple banks and card networks. They are essential for ensuring secure, reliable, and scalable payment processing, with use cases ranging from online stores and mobile apps to in-person point-of-sale systems.