Who processes payments for a direct merchant?

Who processes payments for a direct merchant?

• A. Stripe processes the payments directly for the merchant
• B. The merchant's bank processes payments
• C. A third-party processor not connected to Stripe
• D. Customers process payments themselves

Answer: (A)

Direct merchants rely on Stripe as their payment processor. When a transaction occurs, Stripe securely collects the card details, communicates with the card networks for authorization, and handles settlement to the merchant’s bank account. The merchant’s bank isn’t the processor in this setup, and a third-party processor not connected to Stripe would imply a different arrangement. Customers provide their payment information; the actual processing is done by Stripe on behalf of the merchant.

Direct merchants rely on Stripe as their payment processor. When a transaction occurs, Stripe securely collects the card details, communicates with the card networks for authorization, and handles settlement to the merchant’s bank account. The merchant’s bank isn’t the processor in this setup, and a third-party processor not connected to Stripe would imply a different arrangement. Customers provide their payment information; the actual processing is done by Stripe on behalf of the merchant.