# What is Payment processor?

> A payment processor moves card and other payments between a prop firm's checkout, the card networks and the acquiring bank that settles funds to the firm.

- Source: https://pipvalley.com/glossary/payment-processor
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, the payment setup usually involves a payment gateway or orchestration layer at checkout, a processor that routes transactions, and an acquiring bank that holds the merchant account and settles funds. Some providers combine all three roles.

Prop firms are generally treated as high-risk merchants. Mainstream processors may decline them or close accounts after review, so many firms use high-risk specialists, multiple processors with failover, and crypto payment options alongside cards.

Processor terms cover pricing, rolling reserves, settlement timing, chargeback handling, restricted countries and which products may be sold. Selling outside those terms is a common reason accounts are closed.

## Why it matters

Losing a processor stops revenue immediately. Disclose your business model accurately at underwriting, keep your website consistent with what you told the processor, and keep a second provider ready. Processors review your site: clear terms, refund policy, risk disclosure and descriptors help approval.