Payment Processing

Definition

The end-to-end handling of electronic payment transactions from initiation through authorisation, clearing, and settlement. Payment processing involves multiple parties — merchants, payment gateways, acquiring banks, card networks, issuing banks, and payment processors — coordinating in real time to validate, authorise, and settle funds. The payment processing industry generates significant technology and customer relationship intangible assets, with value driven by transaction volumes, reliability, speed, and regulatory compliance capabilities.