Four different things get called "the payment processor", and mixing them up is why comparing providers is confusing.
The four roles
| Role | What it does |
|---|---|
| Gateway | Captures and encrypts card details at checkout |
| Processor | Routes the transaction through the card networks |
| Acquirer | The bank that receives and holds the funds |
| Merchant account | The account the money lands in before payout |
Traditionally you assembled these separately. Modern providers bundle all four behind one signup, which is why you can start taking payments the same day rather than waiting weeks for underwriting.
Where your money goes
Every card payment splits three ways: interchange to the issuing bank, an assessment to the card network, and the remainder as processor margin. Only that last part differs between providers — see credit card processing fees, explained.
See what a rate really costs you
Defaults are the standard published card rate. Drag the ticket size to see how much of your cost is the flat fee rather than the percentage.
- Fee per transaction
- $0.59
- You keep
- $9.41
- The fixed fee alone
- 3.00%of the sale
At $10.00, the flat $0.30 adds 3.00% on top of the 2.9% headline rate. The fixed fee is costing you more than the percentage does.
Effective rate at each ticket size
GOOD QUESTIONS
Frequently asked
What is the difference between a payment gateway and a payment processor?+
The gateway captures and encrypts card details at checkout and passes them on. The processor moves the transaction through the card networks to the customer's bank and back. Most modern providers bundle both, which is why the terms are used interchangeably.
Do I need a merchant account?+
You need one, but with most modern providers you do not open one yourself. Aggregators place you under their own master merchant account, which is why signup takes minutes rather than weeks.
Who actually takes the money?+
Three parties. Interchange goes to the bank that issued the customer's card, an assessment goes to the card network, and the remainder is the processor's margin. Only the last is negotiable.