'What is a Payment Service Provider (PSP)?' — 2Checkout E-Commerce Glossary

What is a Payment Service Provider (PSP)?
A third party that helps merchants accept and facilitate payments.

How Does a Payment Service Provider Work?
Payment Service Providers partner with acquiring banks to offer merchants the capability to accept payments. Payment Service Providers often offer services in addition to processing transactions. These services include Payment Card Industry Data Security Standard compliance, fraud protection, and the ability to process different currencies and translate different languages.