{"id":3390,"date":"2023-01-25T15:23:00","date_gmt":"2023-01-25T09:53:00","guid":{"rendered":"https:\/\/cashfree.com\/blog\/?p=3390"},"modified":"2025-12-09T17:24:09","modified_gmt":"2025-12-09T11:54:09","slug":"third-party-payment-processor","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/","title":{"rendered":"What&#8217;s a Third-Party Payment Processor? Want A Detailed Guide?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a8f297a0adbd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #364250;color:#364250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #364250;color:#364250\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a8f297a0adbd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#What_is_Third-Party_Payment_Processor_Third-Party_Payment_Definition\" >What is Third-Party Payment Processor? Third-Party Payment Definition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#How_Does_Third-Party_Payment_Processor_Work\" >How Does Third-Party Payment Processor Work?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Authentication_of_Card\" >Authentication of Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Payer_Authorization\" >Payer Authorization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Capture\" >Capture<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Third-Party_Payment_Processor_Example_Third-Party_Payment_Processors_in_India\" >Third-Party Payment Processor Example: Third-Party Payment Processors in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Benefits_and_Limitations_of_Third-Party_Payment_Processors\" >Benefits and Limitations of Third-Party Payment Processors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Advantages_of_Third-Party_Payment_Processors\" >Advantages of Third-Party Payment Processors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#No_PCI_Compliance_Fee\" >No PCI Compliance Fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Better_UX\" >Better UX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Handling_Disputes_and_Refunds\" >Handling Disputes and Refunds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Risk_Mitigation\" >Risk Mitigation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Faster_Turnaround_Time\" >Faster Turnaround Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Easy_Onboarding\" >Easy Onboarding&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Reliability\" >Reliability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Diverse_Modes_of_Payment\" >Diverse Modes of Payment&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#International_Payment_Support\" >International Payment Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Faster_Payment_Settlement_Cycle\" >Faster Payment Settlement Cycle<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Timely_Support\" >Timely Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Payment_Analytics\" >Payment Analytics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Personalised_Checkout_Experience\" >Personalised Checkout Experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#High_Payment_Success_Rate\" >High Payment Success Rate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Limitations_of_Third-Party_Payment_Processors\" >Limitations of Third-Party Payment Processors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Less_Scope_for_Customisation\" >Less Scope for Customisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Higher_Setup_Cost\" >Higher Setup Cost<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Using_Multiple_Third-Party_Payment_Processors\" >Using Multiple Third-Party Payment Processors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#How_To_Choose_a_Third-Party_Payment_Processor\" >How To Choose a Third-Party Payment Processor?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Business_Size\" >Business Size<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Volume_of_Transactions\" >Volume of Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#3rd_Party_Payment_Processor_Policies\" >3rd Party Payment Processor Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Seamless_Integration\" >Seamless Integration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Business_Needs\" >Business Needs&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Excellent_Customer_Support\" >Excellent Customer Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Transaction_limit\" >Transaction limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Automated_Billing\" >Automated Billing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Third-Party_Payment_Processor_Regulation\" >Third-Party Payment Processor Regulation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Capital_Requirements\" >Capital Requirements<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Authorization\" >Authorization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Prevention_of_Money_Laundering\" >Prevention of Money Laundering<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Merchant_Onboarding\" >Merchant Onboarding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Risk_Management\" >Risk Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/#Do_You_Need_a_Third-Party_Payment_Processor\" >Do You Need a Third-Party Payment Processor?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\"><em>Looking for a one-stop solution for info on third-party payment processors? Here is a guide on its advantages, disadvantages<\/em>, features and how to choose.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s a statement you might agree with. Running a business is a strenuous task. Handling the payment processing of your business is arguably the hardest. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Digital payments are taking the payments industry by storm. After all, the global transaction value of digital payments was <a href=\"https:\/\/www.statista.com\/study\/41122\/fintech-report-digital-payments\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$5.2 trillion in 2020<\/a>.<strong> 63% of those payments are <\/strong>sourced from digital commerce. Resultantly, choosing between a merchant account or a third-party payment processor becomes imminent for merchants. <\/p>\n\n\n\n<div data-tf-widget=\"RJywfdGR\" data-tf-iframe-props=\"title=Are You a Payments Expert?\" data-tf-medium=\"snippet\" style=\"width:100%;height:400px;\"><\/div><script src=\"\/\/embed.typeform.com\/next\/embed.js\"><\/script>\n\n\n\n<p class=\"wp-block-paragraph\">Setting up a merchant account for a small business with limited transactions might not be the best way to go. It can be cumbersome and expensive to handle. <strong>Instead, opting for a third-party payment processor can be a better alternative.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro Tip: <\/strong><a href=\"https:\/\/cashfree.com\/blog\/what-is-a-payment-gateway-india?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">What is Payment Gateway?<\/mark><\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article discusses the meaning of third-party payment processor and their features. We will also be uncovering how you can choose a 3rd party payment processor suited to your needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-third-party-payment-processor-third-party-payment-definition\"><span class=\"ez-toc-section\" id=\"What_is_Third-Party_Payment_Processor_Third-Party_Payment_Definition\"><\/span>What is Third-Party Payment Processor? Third-Party Payment Definition<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"3582\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-02-2\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?fit=5001%2C2617&amp;ssl=1\" data-orig-size=\"5001,2617\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-02\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-02-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"third party payment processor\" class=\"wp-image-3582\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?resize=1536%2C804&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-02.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">To decide if your business needs a payment processor, you first need to understand what they are. Moreover, you need to know how they operate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In layman\u2019s terms, a third-party payment processor eliminates the need for your business to set up a merchant account. It gives you easy access to your card-based incoming payments.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us dive deeper.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you are a small business. Using a merchant account for a small set of transactions won\u2019t bode well for your finances.&nbsp; Instead, you can resort to outsourcing. More specifically, a 3rd party payment processor for handling your monetary transactions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It will allow you to receive online payments effortlessly without <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/blog\/what-are-the-kyc-procedures-for-merchant-onboarding\/\">setting up your merchant account.&nbsp;<\/a><\/mark><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/merchant.cashfree.com\/merchants\/signup?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\" target=\"_blank\" rel=\"noreferrer noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"172\" data-attachment-id=\"3581\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-01-2\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?fit=5001%2C1117&amp;ssl=1\" data-orig-size=\"5001,1117\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-01\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?fit=770%2C172&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1024x229.png?resize=770%2C172&#038;ssl=1\" alt=\"Integrate third party payment processor with Cashfree\" class=\"wp-image-3581\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?resize=1024%2C229&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?resize=300%2C67&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?resize=768%2C172&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?resize=1536%2C343&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-third-party-payment-processor-work\"><span class=\"ez-toc-section\" id=\"How_Does_Third-Party_Payment_Processor_Work\"><\/span>How Does Third-Party Payment Processor Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A third party payment processor does not send money to your merchant account. Instead, it uses its merchant accounts to receive funds. Thereafter, they deposit it into your bank account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means you can <strong>use a merchant account even though you don\u2019t own one<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us understand how a third-party <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/blog\/how-does-e-wallet-payment-processing-work\/\">payment processor works<\/a><\/mark><\/strong> in detail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-authentication-of-card\"><span class=\"ez-toc-section\" id=\"Authentication_of_Card\"><\/span>Authentication of Card<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The payment processor starts by authenticating the cardholder\u2019s account number.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is to verify if the card is valid and a part of a 3D secure platform. Here, the merchant server software contacts the card network for confirmation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-payer-authorization\"><span class=\"ez-toc-section\" id=\"Payer_Authorization\"><\/span>Payer Authorization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Now, the merchant plug-in sends the Payer Authentication Request\/Response (PAReq\/PARes) to the Access Control Server (ACS) to start authentication. The ACS is a server deployed by the Issuing bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here, the cardholder\u2019s CVV is verified.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the authentication is successful, an Accountholder Authentication Value (AAV) is generated. The AAV is sent to the merchant within the PARes message. Consequently, this AAV is sent to the acquirer by the merchant. Thereafter, it is forwarded to the Issuing bank. It is sent as a part of the authorization request.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ACS providers have to present AAV values for all attempts.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the Authentication determined by Issuer\u2019s ACS is successful, the transaction Status is Y. (PARes = Y)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the authentication determined by Issuer\u2019s ACS fails, the transaction Status is N. (PARes = N)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it is possible that the authentication could not be performed due to various reasons. Maybe the ACS was not able to handle the authentication request message. Alternatively, it is possible that there was a system failure. Here, the transaction Status is U. (PARes = N).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once the authentication is successful, the payment authorization is carried out. The merchant sends a request to the acquirer or the 3rd party payment processor. For instance, Cashfree. Thereafter, the third-party payment processor submits the request to the credit card issuing party or the account holder\u2019s bank.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If funds are sufficient, authorization is made and funds are deducted. In the case of a debit card, the credit line is adjusted for the amount of the sale.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-capture\"><span class=\"ez-toc-section\" id=\"Capture\"><\/span>Capture<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After authorization, the card network informs the Issuer bank and Merchant plug-in that the card is authorized. Thereafter, funds are transferred from the customer account to the merchant account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As mentioned above, during authorization, funds are deducted. So, the respective amount is deducted from the credit line\/account balance and transferred to the merchant\u2019s account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The time frame between authorization and capture might vary from one PSP (payment solutions provider) to another.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-third-party-payment-processor-example-third-party-payment-processors-in-india\"><span class=\"ez-toc-section\" id=\"Third-Party_Payment_Processor_Example_Third-Party_Payment_Processors_in_India\"><\/span>Third-Party Payment Processor Example: Third-Party Payment Processors in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">India houses a wide range of entities offering third-party payment processors.&nbsp;Some examples are Cashfree, Billdesk, PayPal, CCAvenue, and Payu.&nbsp;Most of these provide a maximum settlement time of 3 days and support all major payment options prevalent in the country.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/merchant.cashfree.com\/merchants\/signup?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\" target=\"_blank\" rel=\"noreferrer noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"172\" data-attachment-id=\"3583\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-01-1-2\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?fit=5001%2C1117&amp;ssl=1\" data-orig-size=\"5001,1117\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-01-1\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?fit=770%2C172&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1-1024x229.png?resize=770%2C172&#038;ssl=1\" alt=\"Try Cashfree Payments for easy integration\" class=\"wp-image-3583\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?resize=1024%2C229&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?resize=300%2C67&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?resize=768%2C172&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?resize=1536%2C343&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-01-1.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;Now that we\u2019ve covered the concept, let us take a look at the advantages and disadvantages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-and-limitations-of-third-party-payment-processors\"><span class=\"ez-toc-section\" id=\"Benefits_and_Limitations_of_Third-Party_Payment_Processors\"><\/span>Benefits and Limitations of Third-Party Payment Processors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Incorporating a <strong><a href=\"https:\/\/www.cashfree.com\/blog\/difference-between-payment-gateway-and-payment-processor\/?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3rd party payment gateway<\/mark><\/a> <\/strong>costs a fraction of setting up a merchant account. But that is not the only benefit you get by partnering with them. Let us list some of those benefits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-advantages-of-third-party-payment-processors\"><span class=\"ez-toc-section\" id=\"Advantages_of_Third-Party_Payment_Processors\"><\/span>Advantages of Third-Party Payment Processors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"3584\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-03-2\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?fit=5001%2C2617&amp;ssl=1\" data-orig-size=\"5001,2617\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-03\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-03-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"third party payment processor - advantages\" class=\"wp-image-3584\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?resize=1536%2C804&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-03.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the <strong>benefits <\/strong>of utilising a third-party payment processor for your business \u2013&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-no-pci-compliance-fee\"><span class=\"ez-toc-section\" id=\"No_PCI_Compliance_Fee\"><\/span>No PCI Compliance Fee<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">With tpp third-party payment processors, you need not worry about the <strong>safety of your payments<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They maintain the highest security measures to keep customer data safe. Hence, do not have to stress about PCI compliance or any other fees on a standalone basis.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-better-ux\"><span class=\"ez-toc-section\" id=\"Better_UX\"><\/span>Better UX<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Did you know that if you invest $1 in UX, you can get results for $100? <strong>That&#8217;s a <a href=\"https:\/\/uxcam.com\/blog\/ux-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">9900% ROI<\/a>!<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Tpp payment processor usually offers optimised checkout pages. In most cases, they are light for slow internet connections and work well on mobile.&nbsp;This results in a faster checkout experience and lower drop-offs. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-handling-disputes-and-refunds\"><span class=\"ez-toc-section\" id=\"Handling_Disputes_and_Refunds\"><\/span>Handling Disputes and Refunds<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Disputes and refunds are a part of everyday business life.&nbsp;More importantly, they are essential for a good customer service strategy. In fact, <a href=\"https:\/\/cloudblogs.microsoft.com\/dynamics365\/bdm\/2018\/08\/30\/now-available-the-2018-state-of-global-customer-service-report\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">95% of consumers<\/a> believe that customer service dictates their choice and loyalty to a brand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A 3rd party payment processor handles monetary transactions on your behalf. It also includes managing disputes and refund requests raised by customers. Their efficiency in <strong>managing customer grievances<\/strong> well helps your business prosper.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-risk-mitigation\"><span class=\"ez-toc-section\" id=\"Risk_Mitigation\"><\/span>Risk Mitigation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Online transactions involve an element of risk since buyers and sellers don\u2019t know each other.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tpp payment processors handle high transaction volumes on a daily basis. Moreover, they have engines to detect potentially risky transactions.&nbsp;Flagging and declining such fraudulent transactions insulates your business from risk and financial loss.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-faster-turnaround-time\"><span class=\"ez-toc-section\" id=\"Faster_Turnaround_Time\"><\/span>Faster Turnaround Time<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A business needs to start accepting payments as the earliest. But setting up a merchant account is a lengthy and complex process. If the vendor considers you risky, he may even reject your application. In contrast, a 3rd party payment processor<strong> ensures hassle-free setup<\/strong> and takes a fraction of the time incurred otherwise.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-easy-onboarding\"><span class=\"ez-toc-section\" id=\"Easy_Onboarding\"><\/span>Easy Onboarding&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, it ensures the approach is holistic and seamless.&nbsp;In fact, some online third-party payment processors (like Cashfree) don\u2019t charge setup and annual maintenance costs, further enhancing the overall value of the business.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-reliability\"><span class=\"ez-toc-section\" id=\"Reliability\"><\/span>Reliability<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Everyone likes to partner with trustworthy organisations. It not only works this way for businesses but for customers too. If they find their most trusted payment partner listed on your website, there is a higher chance of trusting you and your offerings.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With online third-party payment processors, you benefit from partnering with the best players in the payment landscape without shelling out exorbitant charges.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-diverse-modes-of-payment\"><span class=\"ez-toc-section\" id=\"Diverse_Modes_of_Payment\"><\/span>Diverse Modes of Payment&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">It will allow you to <strong>accept payments through diverse modes.&nbsp;<\/strong>After all, customers prefer to pay with diverse modes of payment. This can be cards, UPI, wallets, EMI, Pay Later, etc. In fact, <a href=\"https:\/\/home.bluesnap.com\/snap-center\/blog\/payment-method-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">recent reports<\/a> state that the preferred globally preferred modes of payment are eWallets (36%), credit cards (23%) and debit cards (12%).&nbsp;In India, <a href=\"https:\/\/www.livemint.com\/money\/personal-finance\/upi-beats-debit-credit-cards-to-become-india-s-most-preferred-payment-mode-11582796878729.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">UPI is increasingly becoming the preferred mode of payment<\/a> beating debit and credit cards.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-international-payment-support\"><span class=\"ez-toc-section\" id=\"International_Payment_Support\"><\/span>International Payment Support<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>support for international payments<\/strong> is one of the major advantages. It enables you to sell without thinking of location restrictions and cater to a broader audience.&nbsp;With Cashfree, you get support for over 30 international currencies, allowing you to sell to a global audience.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/merchant.cashfree.com\/merchants\/signup?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\" target=\"_blank\" rel=\"noreferrer noopener\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"3590\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-07\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?fit=5001%2C2617&amp;ssl=1\" data-orig-size=\"5001,2617\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-07\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-07-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"International Payments\" class=\"wp-image-3590\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?resize=1536%2C804&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-07.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-faster-payment-settlement-cycle\"><span class=\"ez-toc-section\" id=\"Faster_Payment_Settlement_Cycle\"><\/span>Faster Payment Settlement Cycle<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A Tpp payment processor takes a while to transfer the customer&#8217;s funds to your account.&nbsp;This is known as the settlement cycle. Choosing a third-party payment processor would ensure a <strong>faster payment settlement cycle<\/strong> compared to the traditional method.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-timely-support\"><span class=\"ez-toc-section\" id=\"Timely_Support\"><\/span>Timely Support<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A lot of online 3rd party payment processors provide 24*7 support to their partners. This ensures the timely resolution of issues and an improved customer experience.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-payment-analytics\"><span class=\"ez-toc-section\" id=\"Payment_Analytics\"><\/span>Payment Analytics<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, they seamlessly integrate with your existing software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They also have the inbuilt ability to provide you with payment analytics to improve business decision-making and better cater to your customers.&nbsp;For instance, you can get reports of your previous transactions and set filters like transaction volume, date and time, mode of payment etc.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-personalised-checkout-experience\"><span class=\"ez-toc-section\" id=\"Personalised_Checkout_Experience\"><\/span>Personalised Checkout Experience<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/us.epsilon.com\/pressroom\/new-epsilon-research-indicates-80-of-consumers-are-more-likely-to-make-a-purchase-when-brands-offer-personalized-experiences\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">80% of consumers<\/a> agree that personalized experiences increase their chances of making a purchase. Each payment processor offers a unique experience. This is one of the critical factors in improving the overall customer experience.&nbsp;It enables you to create a personalised checkout experience and enhance the value quotient for the client.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-high-payment-success-rate\"><span class=\"ez-toc-section\" id=\"High_Payment_Success_Rate\"><\/span>High Payment Success Rate<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Third-party payment processors usually have in-built rerouting capabilities.&nbsp;Basically, they have multiple acquiring banks (acquirers). Now, various acquirers might have downtimes due to maintenance or high traffic. The processors route the transaction to the best-acquiring bank to ensure maximum payment success.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-limitations-of-third-party-payment-processors\"><span class=\"ez-toc-section\" id=\"Limitations_of_Third-Party_Payment_Processors\"><\/span>Limitations of Third-Party Payment Processors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every coin has two sides. Partnering with a third-party payment processor is no different. These come with disadvantages, which you must keep in mind before drawing up a contract with them.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-less-scope-for-customisation\"><span class=\"ez-toc-section\" id=\"Less_Scope_for_Customisation\"><\/span>Less Scope for Customisation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A dedicated merchant account may enable you to make the minutest of tweaks.&nbsp;Partnering with third parties leaves less scope for customization. There are constraints pertaining to the checkout pages, pricing, and other integrations you seek.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-higher-setup-cost\"><span class=\"ez-toc-section\" id=\"Higher_Setup_Cost\"><\/span>Higher Setup Cost<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A 3rd party payment processor entails a high setup cost compared to the traditional way.&nbsp;However, it saves you about a year of testing and choosing all the tools you would require for your payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-using-multiple-third-party-payment-processors\"><span class=\"ez-toc-section\" id=\"Using_Multiple_Third-Party_Payment_Processors\"><\/span>Using Multiple Third-Party Payment Processors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A lot of merchants choose to use multiple third-party payment processors for their payment needs.&nbsp;One of the biggest advantages of using it is <strong>payment routing<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Payment routing means that transactions are forwarded to the acquirer that is most likely to approve them. Moreover, the transactions go to the acquiring bank that supports \u201cfailover transactions\u201d. Hence, if one acquirer declines a transaction, another bank might approve it.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This results in higher payment success rates and a higher percentage of approved transactions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, every business has specific needs according to which they may want to route their transactions. Here are some of them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"3588\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/3rd-party-06-2\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?fit=5001%2C2617&amp;ssl=1\" data-orig-size=\"5001,2617\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3rd-Party-06\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-06-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"Should you choose multiple third-party payment processor\" class=\"wp-image-3588\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?resize=1536%2C804&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/06\/3rd-Party-06.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>MDR<\/strong>: MDR or Merchant Discount Rate is the fee that the merchant pays when a customer makes a payment on his website using a card.&nbsp;A merchant may want to route the transaction based on the MDR offered by the third-party payment processor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Balancing Load<\/strong>: A business might have multiple peak seasons in a year. So it becomes imperative for a merchant to route the transactions to a processor that can handle higher loads with ease.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Business Use Cases:<\/strong> Many payment processors offer unique solutions that cater to specific industries. Hence, a merchant may route transactions related to specific industries to the respective processor.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Downtime:<\/strong> Downtimes are a part of a payment processor\u2019s operations. So, merchants need to consider a processor that has dynamic routing capability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Payment Success Rate: <\/strong>The success rate of different processors may vary. The merchant may choose to route the high-volume transactions to the processor that has a record of success with a large number of funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-choose-a-third-party-payment-processor\"><span class=\"ez-toc-section\" id=\"How_To_Choose_a_Third-Party_Payment_Processor\"><\/span>How To Choose a Third-Party Payment Processor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img data-recalc-dims=\"1\" height=\"403\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/06\/3rd-Party-05-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"How to choose a third-party payment processor\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the factors you should take into consideration before choosing a 3rd party payment processor.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-business-size\"><span class=\"ez-toc-section\" id=\"Business_Size\"><\/span>Business Size<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your software needs are directly proportional to the size of your business. The larger your organisation, the more sophisticated third-party payment processor you would require.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-volume-of-transactions\"><span class=\"ez-toc-section\" id=\"Volume_of_Transactions\"><\/span>Volume of Transactions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Some businesses have few high-value financial transactions. On the other hand, others have a high volume of low-value ones. So, you can look for a processor capable of meeting your transaction volume needs easily.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3rd-party-payment-processor-policies\"><span class=\"ez-toc-section\" id=\"3rd_Party_Payment_Processor_Policies\"><\/span>3rd Party Payment Processor Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every business software comes with its set of terms and conditions. You must garner an in-depth understanding of what the policy document states, before finalising a processor for your organisation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-seamless-integration\"><span class=\"ez-toc-section\" id=\"Seamless_Integration\"><\/span>Seamless Integration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A payment processor is an integral part of your online business. So seamless integration is an important criterion while looking for the same. It includes the ability to collate information from various sources and feed data into the accounting software.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-business-needs\"><span class=\"ez-toc-section\" id=\"Business_Needs\"><\/span>Business Needs&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every business has specific needs. For example, you may need support for Pound-based transactions, or you may have a large amount of <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/blog\/upi-transaction-limit\/\">UPI transactions<\/a><\/mark><\/strong>. Make sure that you choose a payment processor that is in sync with all your business needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-excellent-customer-support\"><span class=\"ez-toc-section\" id=\"Excellent_Customer_Support\"><\/span>Excellent Customer Support<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Even when you sleep, your store is open to all online customers. So it is imperative for you to choose a payment processor that offers reliable support for its customers. It will enable you to reduce downtime and ensure that you can continue your usual business without any hiccups.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-transaction-limit\"><span class=\"ez-toc-section\" id=\"Transaction_limit\"><\/span>Transaction limit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most third-party payment processors have an upper limit on transactions per month. So make sure that your chosen processor is in line with your transaction limit requirements.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-automated-billing\"><span class=\"ez-toc-section\" id=\"Automated_Billing\"><\/span>Automated Billing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are businesses that offer subscriptions or memberships to their users for exclusive perks. If your business is one of them, it becomes imperative for you to offer an automated billing facility to your customers. Look for a processor that supports recurring billing, UPI Autopay, and other related services.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-third-party-payment-processor-regulation\"><span class=\"ez-toc-section\" id=\"Third-Party_Payment_Processor_Regulation\"><\/span>Third-Party Payment Processor Regulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The rules and regulations for a third-party payment processor vary from one country to another. In India, there are certain rules that have to be strictly adhered to.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We have mentioned them below.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-capital-requirements\"><span class=\"ez-toc-section\" id=\"Capital_Requirements\"><\/span>Capital Requirements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Third-party payment processors are required to reach and maintain a specified net worth. Essentially, net worth is a sum total of free reserves, convertible preference shares, paid-up equity capital, etc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In India, the existing payment processor has to achieve and maintain a net worth of at least&nbsp; <a href=\"https:\/\/www.rbi.org.in\/Scripts\/NotificationUser.aspx?Id=12050&amp;Mode=0\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">\u20b915 crores by March 31, 2021, and at least \u20b925 crores by March 31, 2023<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For new entrants in the market, the rules are a bit relaxed. They need to have a net worth of a minimum of \u20b915 crores at the time of application. However, they have to achieve and maintain a net worth of&nbsp; \u20b925 crores after March 31, 2023.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-authorization\"><span class=\"ez-toc-section\" id=\"Authorization\"><\/span>Authorization<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Online payment processors are required to handle funds. So, they require authorization from RBI.&nbsp; They have to apply to the Department of Payment and Settlement Systems (DPSS) for the same.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-prevention-of-money-laundering\"><span class=\"ez-toc-section\" id=\"Prevention_of_Money_Laundering\"><\/span>Prevention of Money Laundering<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Payment processors have to undergo risk assessment procedures. This is done to identify any threats to the integrity or confidentiality of assets from A business compliance prospect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, they have to uphold the Know Your Customer (KYC) \/ Anti-Money Laundering (AML) \/ Combating Financing of Terrorism (CFT) guidelines issued by RBI. They also have to follow the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Prevention_of_Money_Laundering_Act,_2002\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Prevention of Money Laundering Act, of 2002<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-merchant-onboarding\"><span class=\"ez-toc-section\" id=\"Merchant_Onboarding\"><\/span>Merchant Onboarding<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Payment processors have to ensure compliance with Payment Card Industry-Data Security Standard (PCI-DSS) and Payment Application-Data Security Standard (PA-DSS).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They also have to run background checks on merchants before onboarding them. Most importantly, they have to ensure that these merchants do not have any intentions to sell fake products or dupe customers. Furthermore, they may organize security audits of merchant sites to make sure that they are not saving customer card-related data<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-risk-management\"><span class=\"ez-toc-section\" id=\"Risk_Management\"><\/span>Risk Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">They also have to prevent and detect fraud through proper data security infrastructures. Furthermore, they have an obligation to mitigate risks for the security of payment systems by following information security policies&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They have to report any cybersecurity breach to DPSS and CERT-In (Indian Computer Emergency Response Team).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Head over to this blog for more information on <a href=\"https:\/\/cashfree.com\/blog\/payment-aggregator\/?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\" target=\"_blank\" rel=\"noreferrer noopener\">regulations<\/a> for third-party payment gateways and third-party payment processors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro Tip:<\/strong> <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/blog\/types-of-payment-gateway\/?utm_source=thirdpartypaymentprocessor&amp;utm_medium=blog\" target=\"_blank\" rel=\"noreferrer noopener\">Types of Payment Gateways<\/a>!<\/mark><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-do-you-need-a-third-party-payment-processor\"><span class=\"ez-toc-section\" id=\"Do_You_Need_a_Third-Party_Payment_Processor\"><\/span>Do You Need a Third-Party Payment Processor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">So what&#8217;s our verdict? A third-party payment processor is a way forward in your early business days. However, it is important to choose one that covers all your business needs. So, be aware of your requirements and the existing regulation, and consider all aspects before making an informed decision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We hope this blog was one step forward in that direction. \ud83d\ude42<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Looking for a one-stop solution for info on third-party payment processors? Here is a guide on its advantages, disadvantages, features and how to choose. Here&#8217;s a statement you might agree with. Running a business is a strenuous task. Handling the payment processing of your business is arguably the hardest. Digital payments are taking the payments<\/p>\n","protected":false},"author":17,"featured_media":6937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1383],"tags":[1379,1382,1381],"class_list":["post-3390","post","type-post","status-publish","format-standard","has-post-thumbnail","category-payments","tag-online-payment-gateway","tag-payment-processing","tag-payment-solution"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Third-Party Payment Processor? Overview &amp; Benefits<\/title>\n<meta name=\"description\" content=\"Learn about third-party payment processors, how they facilitate transactions, and their advantages for businesses. Discover essential features to consider when selecting a payment processor\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Third-Party Payment Processor? Overview &amp; Benefits\" \/>\n<meta property=\"og:description\" content=\"Learn about third-party payment processors, how they facilitate transactions, and their advantages for businesses. Discover essential features to consider when selecting a payment processor\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/\" \/>\n<meta property=\"og:site_name\" content=\"Cashfree Payments Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-25T09:53:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-09T11:54:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Etee Dubey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Etee Dubey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is a Third-Party Payment Processor? Overview & Benefits","description":"Learn about third-party payment processors, how they facilitate transactions, and their advantages for businesses. Discover essential features to consider when selecting a payment processor","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/","og_locale":"en_US","og_type":"article","og_title":"What is a Third-Party Payment Processor? Overview & Benefits","og_description":"Learn about third-party payment processors, how they facilitate transactions, and their advantages for businesses. Discover essential features to consider when selecting a payment processor","og_url":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/","og_site_name":"Cashfree Payments Blog","article_published_time":"2023-01-25T09:53:00+00:00","article_modified_time":"2025-12-09T11:54:09+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","type":"image\/png"}],"author":"Etee Dubey","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Etee Dubey","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#article","isPartOf":{"@id":"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/"},"author":{"name":"Etee Dubey","@id":"https:\/\/blogrevamp.cashfree.com\/#\/schema\/person\/038f63b7375c3477893792889504083e"},"headline":"What&#8217;s a Third-Party Payment Processor? Want A Detailed Guide?","datePublished":"2023-01-25T09:53:00+00:00","dateModified":"2025-12-09T11:54:09+00:00","mainEntityOfPage":{"@id":"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/"},"wordCount":2823,"commentCount":0,"image":{"@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","keywords":["online payment gateway","payment processing","payment solution"],"articleSection":["Payments"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/blogrevamp.cashfree.com\/third-party-payment-processor\/","url":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/","name":"What is a Third-Party Payment Processor? Overview & Benefits","isPartOf":{"@id":"https:\/\/blogrevamp.cashfree.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#primaryimage"},"image":{"@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","datePublished":"2023-01-25T09:53:00+00:00","dateModified":"2025-12-09T11:54:09+00:00","author":{"@id":"https:\/\/blogrevamp.cashfree.com\/#\/schema\/person\/038f63b7375c3477893792889504083e"},"description":"Learn about third-party payment processors, how they facilitate transactions, and their advantages for businesses. Discover essential features to consider when selecting a payment processor","breadcrumb":{"@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#primaryimage","url":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","contentUrl":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","width":1200,"height":628,"caption":"third party payment processor"},{"@type":"BreadcrumbList","@id":"https:\/\/www.cashfree.com\/blog\/third-party-payment-processor\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/blogrevamp.cashfree.com\/"},{"@type":"ListItem","position":2,"name":"Payments","item":"https:\/\/blogrevamp.cashfree.com\/category\/payments\/"},{"@type":"ListItem","position":3,"name":"What&#8217;s a Third-Party Payment Processor? Want A Detailed Guide?"}]},{"@type":"WebSite","@id":"https:\/\/blogrevamp.cashfree.com\/#website","url":"https:\/\/blogrevamp.cashfree.com\/","name":"Cashfree Payments Blog","description":"Cashfree Payments- Payment Gateway for India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/blogrevamp.cashfree.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/blogrevamp.cashfree.com\/#\/schema\/person\/038f63b7375c3477893792889504083e","name":"Etee Dubey","url":"https:\/\/blogrevamp.cashfree.com\/author\/writereteedubey\/"}]}},"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9MjXo-SG","jetpack_likes_enabled":false,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/04\/3rd-party-PG.png?fit=1200%2C628&ssl=1","_links":{"self":[{"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/posts\/3390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/comments?post=3390"}],"version-history":[{"count":54,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/posts\/3390\/revisions"}],"predecessor-version":[{"id":31096,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/posts\/3390\/revisions\/31096"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/media\/6937"}],"wp:attachment":[{"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/media?parent=3390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/categories?post=3390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogrevamp.cashfree.com\/wp-json\/wp\/v2\/tags?post=3390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}