What is a defining feature of Full Service Processing (FSP)?

The defining feature of Full Service Processing (FSP) is that the processor provides total outsourcing services without risk or liability. In a full-service model, the payment processor takes on comprehensive operational responsibilities for merchants, including transaction processing, fraud management, chargeback handling, and customer support.

This outsourcing approach allows merchants to focus on their core business activities while relying on the processor's expertise to manage the payment transaction lifecycle effectively. The processor typically performs all operational tasks associated with payment processing while also ensuring compliance with relevant regulations and security standards.

By stating that they do not carry risk or liability, it signifies that while they manage the processing aspects, the financial responsibility and risk exposure in terms of losses due to fraud or chargebacks remain with the merchants or other stakeholders, depending on the contract stipulations. This is a critical aspect that distinguishes full-service processing from other models, where the processor might assume some risk or liability.