{"id":4257,"date":"2024-04-25T11:33:51","date_gmt":"2024-04-25T06:03:51","guid":{"rendered":"https:\/\/in.nttdatapay.com\/blog\/?p=4257"},"modified":"2025-07-16T12:33:52","modified_gmt":"2025-07-16T07:03:52","slug":"what-is-a-third-party-payment-processor-a-detailed-guide","status":"publish","type":"post","link":"https:\/\/in.nttdatapay.com\/blog\/what-is-a-third-party-payment-processor-a-detailed-guide\/","title":{"rendered":"What is a Third-Party Payment Processor? A Detailed Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Accepting convenient online payments has become essential for businesses of all sizes. However, directly processing payments involves significant technical, financial and compliance burdens that most merchants do not have expertise in.\u00a0<\/span> \u00a0<\/p>\r\n<p><span style=\"font-weight: 400;\">This blog aims to provide a detailed overview of what exactly a third-party payment processor is and how it enables online transactions.<\/span> \u00a0<\/p>\r\n<h2><span style=\"font-weight: 400;\">A Guide to Third-Party Payment Processor<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">As consumer preference for contactless checkout experiences continues to rise, those unable to support digital transaction options risk losing customers and falling behind competitors. However, directly processing payments involves overseeing complex regulatory <a href=\"https:\/\/in.nttdatapay.com\/blog\/compliance-requirements-for-payment-gateway\/\">compliance requirements<\/a>.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">This is where partnering with a specialised <a href=\"https:\/\/in.nttdatapay.com\/blog\/what-are-third-party-payment-providers\/\">third-party payment processor<\/a> can provide merchants with a scalable solution. By leveraging an established processor&#8217;s pre-existing infrastructure and expertise, businesses of all sizes can gain access to advanced payment capabilities.\u00a0<\/span><\/p>\r\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;&lt;p class=&quot;wpcf7-contact-form-not-found&quot;&gt;&lt;strong&gt;Error:&lt;\/strong&gt; Contact form not found.&lt;\/p&gt;&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:6659,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:2236962},&quot;15&quot;:&quot;Arial, Helvetica, sans-serif&quot;}\">\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2460-o1\" lang=\"en-GB\" dir=\"ltr\" data-wpcf7-id=\"2460\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/4257#wpcf7-f2460-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2460\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.4\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_GB\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2460-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"cus-form\">\n\t<p style=\"font-size: 24px;font-weight: 600;text-align: center;\">Enquire Now\n\t<\/p>\n\t<p><label>Products Required:<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"products\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" name=\"products\"><option value=\"Payment Gateway\">Payment Gateway<\/option><option value=\"POS Machine\">POS Machine<\/option><option value=\"Reseller\">Reseller<\/option><\/select><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"uname\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name*\" value=\"\" type=\"text\" name=\"uname\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone*\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email*\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"message\"><textarea cols=\"10\" rows=\"3\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea form-control\" aria-invalid=\"false\" placeholder=\"Message\" name=\"message\"><\/textarea><\/span><br \/>\n\t\n\t<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm\" value=\"\" type=\"hidden\" name=\"utm\" \/><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Submit\" \/>\n\t<\/p>\n<\/div>\n<style>\n.cus-form .form-control{width: 100%!important;margin: 7px 0px;padding: 8px;border-radius: 3px;height: auto;line-height: 20px;}\n.cus-form{display: block;margin: 0 auto;max-width: 400px;width: 100%;padding: 20px;box-shadow: 0px 0px 4px 0px #0000002b;border-radius: 6px;margin-bottom: 25px;padding-bottom: 0px;}\n.cus-form .wpcf7-submit{margin: 0 auto;display: block;}\n.cus-form h3{background: #ff6644;text-align: center;margin: -21px;margin-bottom: 20px;padding: 6px;}\n<\/style>\n<p><script>\ndocument.getElementById(\"utm\").value = window.location.href;\n\ndocument.addEventListener( 'wpcf7mailsent', function( event ) {\n location = 'https:\/\/in.nttdatapay.com\/blog\/thankyou\/';\n}, false );\n<\/script>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">What is a Third-party Payment Process?<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">A third-party payment processor is a specialised firm that businesses partner with to accept and manage payments online and offline. Processors connect merchants securely to major credit and debit card networks through their proprietary platforms.<\/span> \u00a0<\/p>\r\n<p><span style=\"font-weight: 400;\">They handle all technical payment integration, compliance with industry standards, fraud prevention, and fund settlement, allowing merchants to focus on their core business while benefiting from fast, seamless, low-risk digital transaction capabilities.\u00a0\u00a0\u00a0<\/span><\/p>\r\n<h2 style=\"text-align: center;\"><em><span id=\"Recent_Web_Stories\">Recent Web Stories<\/span><\/em><\/h2>\r\n\t\t<div class=\"web-stories-list alignnone has-archive-link is-view-type-circles is-style-default is-carousel\" data-id=\"1\">\n\t\t\t<div\n\t\t\tclass=\"web-stories-list__inner-wrapper carousel-1\"\n\t\t\tstyle=\"--ws-circle-size:150px\"\n\t\t\t>\n\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\tclass=\"web-stories-list__carousel circles\"\n\t\t\t\t\tdata-id=\"carousel-1\"\n\t\t\t\t\tdata-prev=\"Previous\"\n\t\t\t\t\tdata-next=\"Next\"\n\t\t\t\t\t>\n\t\t\t\t\t\t\t\t\t<div\n\t\t\t\tclass=\"web-stories-list__story\"\n\t\t\t\tdata-wp-interactive=\"web-stories-block\"\n\t\t\t\tdata-wp-context='{\"instanceId\":1}'\t\t\t\tdata-wp-on--click=\"actions.open\"\n\t\t\t\tdata-wp-on-window--popstate=\"actions.onPopstate\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<div class=\"web-stories-list__story-poster\">\n\t\t\t\t<a href=\"https:\/\/in.nttdatapay.com\/blog\/web-stories\/future-of-digital-currency-how-to-use-cbdc-in-india\/\" >\n\t\t\t\t\t<img\n\t\t\t\t\t\tsrc=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-640x853.jpg\"\n\t\t\t\t\t\talt=\"Future of Digital Currency: How to Use CBDC in India\"\n\t\t\t\t\t\twidth=\"185\"\n\t\t\t\t\t\theight=\"308\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tsrcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page.jpg 640w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-105x140.jpg 105w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-311x414.jpg 311w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-149x199.jpg 149w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-60x80.jpg 60w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Future-of-Digital-Currency-How-to-Use-CBDC-in-India-poster-page-150x200.jpg 150w\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tsizes=\"auto, (max-width: 640px) 100vw, 640px\"\n\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div\n\t\t\t\tclass=\"web-stories-list__story\"\n\t\t\t\tdata-wp-interactive=\"web-stories-block\"\n\t\t\t\tdata-wp-context='{\"instanceId\":1}'\t\t\t\tdata-wp-on--click=\"actions.open\"\n\t\t\t\tdata-wp-on-window--popstate=\"actions.onPopstate\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<div class=\"web-stories-list__story-poster\">\n\t\t\t\t<a href=\"https:\/\/in.nttdatapay.com\/blog\/web-stories\/top-reasons-why-online-payment-fails\/\" >\n\t\t\t\t\t<img\n\t\t\t\t\t\tsrc=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-640x853.jpg\"\n\t\t\t\t\t\talt=\"10 Top Reasons Why Online Payment Fails?\"\n\t\t\t\t\t\twidth=\"185\"\n\t\t\t\t\t\theight=\"308\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tsrcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page.jpg 640w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-105x140.jpg 105w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-311x414.jpg 311w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-149x199.jpg 149w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-60x80.jpg 60w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Top-Reasons-Why-Online-Payment-Fails-poster-page-150x200.jpg 150w\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tsizes=\"auto, (max-width: 640px) 100vw, 640px\"\n\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div\n\t\t\t\tclass=\"web-stories-list__story\"\n\t\t\t\tdata-wp-interactive=\"web-stories-block\"\n\t\t\t\tdata-wp-context='{\"instanceId\":1}'\t\t\t\tdata-wp-on--click=\"actions.open\"\n\t\t\t\tdata-wp-on-window--popstate=\"actions.onPopstate\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<div class=\"web-stories-list__story-poster\">\n\t\t\t\t<a href=\"https:\/\/in.nttdatapay.com\/blog\/web-stories\/what-are-upi-transaction-mistake\/\" >\n\t\t\t\t\t<img\n\t\t\t\t\t\tsrc=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-640x853.jpg\"\n\t\t\t\t\t\talt=\"What Are UPI Transaction Mistake?\"\n\t\t\t\t\t\twidth=\"185\"\n\t\t\t\t\t\theight=\"308\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tsrcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page.jpg 640w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-105x140.jpg 105w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-311x414.jpg 311w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-149x199.jpg 149w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-60x80.jpg 60w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/What-Are-UPI-Transaction-Mistake-poster-page-150x200.jpg 150w\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tsizes=\"auto, (max-width: 640px) 100vw, 640px\"\n\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div\n\t\t\t\tclass=\"web-stories-list__story\"\n\t\t\t\tdata-wp-interactive=\"web-stories-block\"\n\t\t\t\tdata-wp-context='{\"instanceId\":1}'\t\t\t\tdata-wp-on--click=\"actions.open\"\n\t\t\t\tdata-wp-on-window--popstate=\"actions.onPopstate\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<div class=\"web-stories-list__story-poster\">\n\t\t\t\t<a href=\"https:\/\/in.nttdatapay.com\/blog\/web-stories\/book-tickets-on-irctc-with-international-debit-credit-cards\/\" >\n\t\t\t\t\t<img\n\t\t\t\t\t\tsrc=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-640x853.jpg\"\n\t\t\t\t\t\talt=\"Book Tickets on IRCTC with International Debit &#038; Credit Cards\"\n\t\t\t\t\t\twidth=\"185\"\n\t\t\t\t\t\theight=\"308\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tsrcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards.jpg 640w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-105x140.jpg 105w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-311x414.jpg 311w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-149x199.jpg 149w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-60x80.jpg 60w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/Book-Tickets-on-IRCTC-with-International-Debit-Credit-Cards-150x200.jpg 150w\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tsizes=\"auto, (max-width: 640px) 100vw, 640px\"\n\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div\n\t\t\t\tclass=\"web-stories-list__story\"\n\t\t\t\tdata-wp-interactive=\"web-stories-block\"\n\t\t\t\tdata-wp-context='{\"instanceId\":1}'\t\t\t\tdata-wp-on--click=\"actions.open\"\n\t\t\t\tdata-wp-on-window--popstate=\"actions.onPopstate\"\n\t\t\t\t>\n\t\t\t\t\t\t\t<div class=\"web-stories-list__story-poster\">\n\t\t\t\t<a href=\"https:\/\/in.nttdatapay.com\/blog\/web-stories\/how-to-create-a-payment-gateway-api\/\" >\n\t\t\t\t\t<img\n\t\t\t\t\t\tsrc=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-640x853.jpg\"\n\t\t\t\t\t\talt=\"How To Create a Payment Gateway API?\"\n\t\t\t\t\t\twidth=\"185\"\n\t\t\t\t\t\theight=\"308\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tsrcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page.jpg 640w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-105x140.jpg 105w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-311x414.jpg 311w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-149x199.jpg 149w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-60x80.jpg 60w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2024\/03\/How-To-Create-a-Payment-Gateway-api-poster-page-150x200.jpg 150w\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tsizes=\"auto, (max-width: 640px) 100vw, 640px\"\n\t\t\t\t\t\t\t\t\t\t\t\tloading=\"lazy\"\n\t\t\t\t\t\tdecoding=\"async\"\n\t\t\t\t\t>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<div tabindex=\"0\" aria-label=\"Previous\" class=\"glider-prev\"><\/div>\n\t\t\t\t\t<div tabindex=\"0\" aria-label=\"Next\" class=\"glider-next\"><\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\r\n<h2><span style=\"font-weight: 400;\">Working of Third-party Payment Processors<\/span><\/h2>\r\n<h3><span style=\"font-weight: 400;\">1. Merchant Onboarding<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Merchants apply for an account and submit the <a href=\"https:\/\/in.nttdatapay.com\/blog\/decoding-kyc-requirements-for-payment-facilitators\/\">required KYC<\/a> documents.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The processor sets up the merchant profile and issues API keys\/credentials.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">2. Integration\u00a0<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Merchant integrates the processor&#8217;s SDK\/API into their website\/app checkout flows.\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plugins are also available for eCommerce platforms like WooCommerce, Shopify, etc.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">3. Payment Collection<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customers enter their payment details like card, net banking or wallet on the merchant site.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This sensitive data is submitted securely to the processor via API in real time.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">4. Authorisation\u00a0<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The processor verifies payment details with issuing banks in milliseconds.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An approval or decline response is sent back to the merchant.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">5. Transaction Settlement<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Approved transactions are batched and settled periodically (usually daily).<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Funds are deposited directly into the merchant&#8217;s bank account.\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">6. Fraud Prevention<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tools analyse risks based on parameters like frequency, location, etc.\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Suspicious transactions are flagged and require additional verification.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">7. Dispute Management<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors support merchants in handling payment-related customer disputes.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They work with issuing banks to resolve chargebacks where possible.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">8. Reporting\u00a0<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed sales, volume, and risk reports are available on processor dashboards.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Merchants can track KPIs, identify trends and optimise operations.<\/span><\/li>\r\n<\/ul>\r\n<h3><span style=\"font-weight: 400;\">9. Ongoing Support<\/span><\/h3>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors provide 24\/7 support on payments, integrations and compliance.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regular account management and upgrades to their platforms.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400;\">Merchant account providers Vs. Third-party processors<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Here are common differences between merchant account providers and third-party processors.<\/span> \u00a0<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><b>Merchant account providers<\/b><\/td>\r\n<td><b>Third-party processors<\/b><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span style=\"font-weight: 400;\">Responsible for underwriting merchants, funding settlement accounts and handling all regulatory\/compliance requirements.<\/span><\/td>\r\n<td><span style=\"font-weight: 400;\">Focus on building robust APIs\/platforms and providing value-added services around payments.<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span style=\"font-weight: 400;\">Manage chargebacks and directly settle approved transactions.<\/span><\/td>\r\n<td><span style=\"font-weight: 400;\">Rely on merchant account providers for settlement but can offer additional risk scoring and tools.<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span style=\"font-weight: 400;\">Require merchants to apply for individual accounts and be directly responsible for all associated costs.<\/span><\/td>\r\n<td><span style=\"font-weight: 400;\">Merchants sign up for virtual terminal\/gateway access through a single processor account.<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span style=\"font-weight: 400;\">Have direct visibility into merchant business and transaction details for underwriting.<\/span><\/td>\r\n<td><span style=\"font-weight: 400;\">Only have indirect access to merchant information via APIs or their partner bank accounts.<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span style=\"font-weight: 400;\">Maintain direct relationships with card brands as principal members and sponsors.<\/span><\/td>\r\n<td><span style=\"font-weight: 400;\">They are not directly involved in card brand sponsorship but help merchants accept major payment methods.<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>\u00a0 <span style=\"font-weight: 400;\">With the payment processors\u2019 omnichannel solutions, you can accept payments across websites, mobile apps, physical retail stores,<\/span><a href=\"https:\/\/in.nttdatapay.com\/blog\/what-is-moto-payment-processing\/\"><span style=\"font-weight: 400;\"> mail\/phone orders <\/span><\/a><span style=\"font-weight: 400;\">and more.\u00a0\u00a0\u00a0<\/span> \u00a0<\/p>\r\n<h2><span style=\"font-weight: 400;\">Benefits of Working with Third-party Payment Processors<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Here are some benefits of working with third-party payment processors.<\/span> \u00a0<\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors ensure all PCI, data security and industry compliance requirements are met.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sensitive financial data is handled securely due to processors&#8217; certified infrastructure.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No need for expensive merchant accounts or in-house development of payment systems.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payments can be accepted quickly by integrating processor APIs\/plugins vs building from scratch.\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors free up merchants to focus on products\/services vs payment complexities.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors provide value-added tools for recurring billing, fraud prevention, advanced analytics, etc.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Most processors support a wide range of online and offline payment options globally.\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As business grows, processors can scale to support higher transaction volumes seamlessly.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dedicated processor teams help with integrations, risk management and payment troubleshooting.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Processors continuously upgrade platforms to incorporate new payment technologies and regulations.<\/span><\/li>\r\n<\/ul>\r\n<p>\u00a0 Also, check<span style=\"font-weight: 400;\">\u00a0on the <a href=\"https:\/\/in.nttdatapay.com\/blog\/payment-processing-challenges\/\">challenges of payment processors<\/a>.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">Choosing the best third-party payment processor &#8211; NTT DATA Payment Services<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Choosing the right processor is an important decision to ensure seamless transactions and regulatory compliance. Third-party payment processors like <\/span><span style=\"font-weight: 400;\">NTT DATA Payment Services<\/span><span style=\"font-weight: 400;\"> provide merchants with a secure, scalable and cost-effective solution to accept digital payments.\u00a0<\/span> \u00a0<\/p>\r\n<p><a href=\"https:\/\/www.nttdatapay.com\/\" target=\"_blank\" rel=\"noopener\">NTT DATA Payment Services <\/a>offers a complete payment solution to advance both your offline and online businesses from,<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.nttdatapay.com\/online-payment-gateway-india\" target=\"_blank\" rel=\"noopener\">Online Payment Gateway in India<\/a><\/li>\r\n<li><a href=\"https:\/\/www.nttdatapay.com\/swipecard-pos-machine\" target=\"_blank\" rel=\"noopener\">POS machines<\/a><\/li>\r\n<li><a href=\"https:\/\/www.nttdatapay.com\/ivr-payment-system\" target=\"_blank\" rel=\"noopener\">IVR payments<\/a><\/li>\r\n<li>Mobile applications, and<\/li>\r\n<li><a href=\"https:\/\/in.nttdatapay.com\/blog\/bharat-qr-code-how-it-works-and-benefits\/\">Bharat QR Scan and Pay<\/a><\/li>\r\n<\/ul>\r\n<p>We\u00a0ensure maximum comfort, convenience, and safety for all your payments.<\/p>\r\n<h2><span style=\"font-weight: 400;\">Partnering for Payments to Maximise Conversions and Grow Revenue<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Third-party payment processors provide merchants with a secure, scalable and cost-effective solution to accept digital payments globally. By offloading complex technical, financial and compliance responsibilities, processors act as a single integration point for multiple payment options.\u00a0<\/span> \u00a0<\/p>\r\n<p><span style=\"font-weight: 400;\">Their services around fraud protection, reporting, subscriptions and<\/span><a href=\"https:\/\/in.nttdatapay.com\/blog\/overview-of-omni-channel-payment-processing\/\"><span style=\"font-weight: 400;\"> omnichannel <\/span><\/a><span style=\"font-weight: 400;\">support help optimise the checkout experience. Whether a small business or large enterprise, partnering with a reputable payment processor can simplify payment processing workflows and accelerate business growth.<\/span><\/p>\r\n<!-- \/wp:post-content -->\r\n\r\n<!-- wp:table -->\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td style=\"text-align: center;\"><em>Also, you can get frequent updates on <a href=\"https:\/\/www.instagram.com\/nttdatapayments\/\" target=\"_blank\" rel=\"noopener\">nttdatapayments<\/a> Instagram page.<\/em><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n<h3><span style=\"font-weight: 400;\"><span data-sheets-root=\"1\" data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Third-Party Payment Processor&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15039,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;5&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;7&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;10&quot;:2,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:2236962},&quot;15&quot;:&quot;Arial&quot;,&quot;16&quot;:10}\">Third-Party Payment Processor: <\/span>FAQs<\/span><\/h3>\r\n<h4><span style=\"font-weight: 400;\">1. What are the benefits of using a payment processor?<\/span><\/h4>\r\n<p><span style=\"font-weight: 400;\">Processors handle payment security and compliance so merchants can focus on their business. They provide fast, global payment processing and value-added services.<\/span> \u00a0<\/p>\r\n<h4><span style=\"font-weight: 400;\">2. How do I choose a payment processor?\u00a0\u00a0<\/span><\/h4>\r\n<p><span style=\"font-weight: 400;\">Consider factors like pricing, supported payment methods, additional tools, reputation, customer support and how well they integrate with your platforms.<\/span> \u00a0<\/p>\r\n<h4><span style=\"font-weight: 400;\">3. What payment methods do most processors support?<\/span><\/h4>\r\n<p><span style=\"font-weight: 400;\">Popular methods include major credit\/debit cards, ACH\/bank transfers, <a href=\"https:\/\/in.nttdatapay.com\/blog\/digital-wallets-future-of-online-payment-system\/\">digital wallets<\/a>, EMI, UPI, QR Scan and Pay, and local payment options depending on the country\/region.\u00a0<\/span> \u00a0<\/p>\r\n<h4><span style=\"font-weight: 400;\">4. Can I accept both online and offline payments?<\/span><\/h4>\r\n<p><span style=\"font-weight: 400;\">Yes, many processors provide omnichannel solutions to accept payments across websites, mobile apps, physical retail stores, mail\/phone orders and more. \u00a0 <\/span><\/p><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Accepting convenient online payments has become essential for businesses of all sizes. However, directly processing payments involves significant technical, financial and compliance burdens that most merchants do not have expertise&#8230; <!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":4824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,16],"tags":[156],"class_list":["post-4257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-payment","tag-third-party-payment-processor"],"_links":{"self":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/4257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/comments?post=4257"}],"version-history":[{"count":3,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/4257\/revisions"}],"predecessor-version":[{"id":4261,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/4257\/revisions\/4261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/media\/4824"}],"wp:attachment":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/media?parent=4257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/categories?post=4257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/tags?post=4257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}