FinTech Company, Credit Card Processor, Payment Processor, What’s The Difference?

If you just recently started a business and have been looking for ways to accept credit card payments along with how to accept other types of payments such as debit cards, cash, ACH, gift card, and loyalty cards, you may be getting a little confused and overwhelmed with your search. 

One of the obvious places business owners go to when looking for payment processing is their bank. But, their bank is not always their best choice. Did you know that many banks actually outsource their payment processing to a payment processing company? It’s true!

When it comes to how you process payments, you want a merchant account provider that has a team of payment processing experts. 

In reference to a company that helps merchants accept and deliver payments these titles are used:

  • Fintech company (“fintech” is the abbreviation for financial technology. Fintech companies are also called financial technology companies along with “payment tech companies,” and “payment technology companies.”)
  • Credit card processor
  • Payment processor

So what’s the difference between the three: fintech company, credit card processor, and payment processor?

“Credit card processor” and “payment processor” are used interchangeably. It would be unheard of for a company that provides businesses with the solutions to accept credit card payments to not provide them with the ability to accept any other type of payments.

accept payments online with ach
Pictured: An example of how to accept payments online. Through the MX Merchant app, accept ACH payments online with the Quick Pay feature.

Fintech companies may or may not offer payment processing services.

The payment processing technology that accepts credit cards also accepts debit cards. Depending on the gift card program, some payment terminals can accept gift and loyalty cards. 

ACH and cash payments are not processed through payment terminal machines but these payment acceptance types are also offered by payment processors. 

ACH payment acceptance works with check readers and some online gateways such as MX Merchant.

Now, a fintech company can be different from a credit card processor / payment processing company.

Priority Payment Systems Local for example doubles as a fintech company and a payment processing company. But, not all fintech companies offer payment processing services. 

FinTech Definition

The term fintech alone is best defined as “new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.” (Investopedia)



What is a Fintech Company?

Companies that specialize in fintech are known as financial technology institutions. They can be one of two innovators:

  1. Product creators. A company that specializes in making payment equipment that they sell directly to businesses or payment processing companies. They are the brains and the innovators behind the physical tools merchants need to accept and deliver payments.
  2. Product expert resellers. A company that specializes in fintech and resells it is known as a reseller. They may even develop some of their own fintech and then resell others (like Priority Payments Systems does). 

Aside from creating fintech, fintech companies:

  • Build product updates
  • Provide technology support to merchants (some)

Fintech companies sell their products directly to businesses or sell it to payment processors and banks that then resell it to merchants who utilize their payment processing services.

What Type of Payment Technology Does a FinTech Company Offer?

The type of payment technology a fintech company offers depends on the company. Some companies specialize in one type of fintech such as just payment terminal machines. Others fintech companies offer integrated options. 

Clover for example, one of the most well-known names in payment tech, is one of those companies that offers integrated options such as:

  • Point of sale. Clover POS (point of sale system, pos system in restaurant / pos system for restaurant specialization)
  • Payment terminal machines. Accept payments for your restaurants curbside or accept payments for your retail store on-the-go
  • Mobile and NFC. Mobile payments and contactless payments.
  • Online payments. The ability to accept online payments with online ordering digital menu product

Choosing a Company to Process Payments With

When it comes to choosing a company to process payments, which is best? This really comes down to what you are looking for. Consider these questions.

  • Do you prefer to work with one or two payment vendors?
  • Do you want to do payment tech research or would you rather have payment processing experts make recommendations instead?
  • Can the company that sells the payment tech you’d like to use for your business also offer processing services? If the answer is no, you will have no choice but to choose two vendors. 
  • What kind of support are you looking for?
  • Does age of the business matter to you? Do you prefer to work with an older or newer company?

Some of these types of payments companies have been around for decades while others are startups. UNION POS for example is one of the newer payment technology companies. POSitouch on the other hand, has been around since 1985.

We are proud to provide payment processing and fintech to businesses across the United States, with a heavy focus in NJ, NYC, and FL. 

Learn more: Benefits of Working With Priority Payment Systems Local

Fintech Innovates Payment Deliverability and Acceptance

Fintech is changing economies around the world by continuously offering new and innovative ways to deliver payments. 

Who would have thought 15 years ago that today we would be able to hold up our phone up to a payment terminal to pay for goods and services without having to swipe a card? This innovation is thanks to the innovative world of NFC payments (near field communication) such as Apple Pay and Google Pay and each payments company that makes it work. I mean, who also could have guessed that we would be able to make payments with our phones in general? 

Pictured: Pay online with Apple Pay from Apple Wallet. [Image Source: Apple]

In highschool, I remember carrying around my old Nokia phone to let my parents know what time to pick me up from Friday nights at the mall. But, I mostly used that phone to play arguably one of the most popular games of all time – Snake! With $10 cash in my pocket to spend on some food at the food court and maybe a new set of earrings from Claire’s, life was good. 

Fast forward to today: we can make purchases in seconds from the mini computers we carry around in our pocket or purse that we call “smartphone.” In addition to being able to easily make purchases in stores with our smartphones, we can make them online. Apple for example stores credit card information in its Wallet so there’s no need to have your credit card handy when buying items online that accept Apple Pay.

Fintech Evolves to Offer $0 Credit Card Processing Fees from Priority Payments Local, Payments Company

For better or for worse (mostly for the better unless you are a shopaholic), fintech is evolving for the best.

As a business, you accept credit card payments faster, more secure, and easier than ever before. And with Net Zero Processing Fees, you pay $0 on credit card processing fees

When our payments company first launched this program in 2018, there was only one type of payment processing equipment that could accommodate cash discounting and surcharging per compliance protocols. Due to the demand, we have since been able to offer Net Zero on various systems. 

Pictured: this receipt was printed from the POS system RPOWER – a restaurant POS system that processes Net Zero payments. As shown, the POS system automatically calculates the cash and credit prices. 

cash discount program example

Seeking a payment processor / payments company to work with?

Let’s chat about your business goals and get to know you better so we can provide you with the best credit card processing rates and fintech, be it a POS system, payment terminal machine, or online gateway.

What our merchants are saying: Priority Payments Local payment processing company reviews

Marisa Sanfilippo
Marisa Sanfilippo
Marisa is the marketing lead here at Priority Payments Local, an NJ based payment processing company, bringing you the latest company news and product education.

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