Here at Payscape, we provide business owners with financial technologies that allow them to accept payments, streamline business, and increase cash flow. Basically, we’re a big link in what is  referred to as the payment processing industry. But just who and what’s involved in payment processing can be a little confusing if you’re not in the business.

The payment ecosystem, which facilitates the transfer of money between a payer and payee, is explained in our handy infographic below. It breaks everything down to give you a better understanding of what’s involved in the world of payment processing.

Acquirers

These guys take liability for merchant activity, including financial obligations, regulatory requirements, and security compliance. They own the merchant relationship.

Processors

They handle the “muck” of transaction processing and are often called backend networks. They transfer funds to the merchant, deal with all authorizations and settlements, and dispute management.

Issuers

Issuers are the banks, and without a bank you cannot legally have a payment network. Banks are at the source of the cash, and are the likely destination of the cash. Banks own customer relationships and profit from debt, cardholder fees, and interchange.

Gateways

Gateways authorize credit card payments for businesses, online or in the store. They facilitate the transfer of information between a payment portal (such as a website, mobile phone or interactive voice response service) and the Front End Processor or bank.

Independent Sales Organization (ISO) / Member Service Provider (MSP)

ISO is a term used within the payment industry to identify an individual or organization that is not an Association (Visa & MasterCard) Member. They have bank card relationships with Association Members (banks) who participate in issuing or acquiring functions. ISO’s can also be referred to as Member Service Providers (MSP), and this terminology most commonly differs between the card associations.

Card Networks

Just about everyone who’s ever been online has a credit or debit card, whether it’s a Visa, Mastercard, American Express, Discover, etc. The cardholder refers to someone who obtains a bankcard from a card issuing bank and then present that card to merchants as payment for goods or services. That’s you!