Payment Processing Guides
Short, practical explanations of the terms and decisions that come up when you apply for card processing, written for merchants rather than payment specialists.
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What is a PSP?
A payment service provider is the company that connects your checkout to the card schemes and local payment methods, submits transactions for authorisation, and reports on them. Some PSPs also hold the acquiring licence; many route your transactions to a separate acquiring bank.
What is an acquirer?
An acquiring bank is licensed by the card schemes to accept card transactions on your behalf, holds your merchant account, and settles the funds to your bank. It also carries the financial risk if you cannot refund your customers, which is why the acquirer, not the gateway, decides whether you are accepted.
PSP vs acquirer
The PSP provides the technology and the commercial relationship; the acquirer holds the scheme licence, underwrites your business and settles your money. Many merchants need both, sometimes bundled by one provider, sometimes contracted separately.
What is a merchant account?
A merchant account is an account held with an acquiring bank that allows you to accept card payments and receive settlement. It is not a business bank account: funds pass through it, are netted against refunds, fees and any reserve, and are then paid out to your ordinary bank account.
High-risk payment processing
High risk is a classification applied by acquirers and card schemes, not a judgement about your business. It means your industry, business model or dispute profile creates more potential refund and chargeback liability, so fewer providers will underwrite you and terms include tighter controls.
How to choose a payment processor
Start with acceptance, not price. Confirm that the provider's acquirer will underwrite your industry, countries and volume; then compare approval rates, payment methods, settlement terms and total cost, and check how you would leave if it does not work out.
Chargeback ratio
Chargeback ratio is the number of chargebacks in a month divided by the transactions or volume in that period, expressed as a percentage. It is the metric acquirers watch most closely, because card schemes place merchants above their thresholds into monitoring programmes with fees and remediation requirements.
Rolling reserve
A rolling reserve is a percentage of each settlement that your acquirer holds for a fixed period before releasing it. It exists to cover refunds and chargebacks the acquirer might otherwise have to fund, and it directly affects your working capital.
MCC codes
A merchant category code is a four-digit code that classifies what your business sells. Your acquirer assigns it during onboarding, and it influences interchange, whether issuers approve your transactions, and which acquiring programmes you are eligible for.
Ready to compare providers?
When the terminology is clear, move on to the commercial pages: payment processors, payment service providers, acquiring banks and high-risk payment processing, or browse payment processing by industry.
Find a payment provider that fits your business
Add your business essentials once and see which providers your profile matches before you apply anywhere.
Find my payment providerNothing is shared with a provider until you submit your onboarding pack. Approval is always the provider's decision.