Third-Party Processor

A Third Party Processor is an independent processor that is contracted with by a Bank or Processor to conduct some part of the transaction processing process. -Some of these Third Party Processors specialize in running and hosting networks of Point Of Sale (POS) terminals connected to their Host via dial out modem; they produce the software in the POS terminals as well as in their host, and route authorization requests to Visa or Master Card as needed (MAPP, MDI, FDR, for example). -Other Third Party Processors specialize in the Settlement of credit card transactions with Visa and Master Card so that merchants can be paid (FDR for example). -In the world of Internet Credit Card Processing, the Secure Payment Gateway Provider is another type of Third Party Processor.