What must organizations that process credit cards work with instead of directly with the card issuers?

Organizations that process credit cards typically work with a credit card processor instead of directly with the card issuers. The credit card processor acts as an intermediary, facilitating the transaction between the merchant and the credit card network, which ultimately connects to the card issuers. This relationship simplifies the process for merchants, as the credit card processor handles authorization, settlement, and the transfer of funds associated with credit card transactions.

By working with a credit card processor, organizations can benefit from established systems and technology designed to efficiently manage payment transactions while ensuring compliance with relevant security standards, such as PCI DSS. This partnership allows businesses to focus on their core operations without needing to navigate the complexities associated with dealing directly with multiple card issuers and their specific requirements.

While banks, payment gateways, and financial institutions play important roles in the payment processing ecosystem, they do not directly fulfill the same intermediary function regarding credit card transactions as credit card processors do. For instance, banks may provide merchant accounts or financing, a payment gateway facilitates online transactions, and financial institutions may offer various banking services, but the routing and processing of credit card payments are the primary responsibilities of the credit card processor.