What is the primary function of a Back-end Processor?

The primary function of a Back-end Processor is to process and clear transactions for acquirers. This involves handling the behind-the-scenes operations that occur after a transaction is initiated, ensuring that funds are transferred correctly between financial institutions. The back-end processor plays a critical role in verifying the transaction details, settling accounts, and managing the interchange process, which is essential for maintaining transaction integrity and security.

In the context of payment processing, the back-end processor acts as the intermediary between different banks and card issuers, facilitating the flow of money and data. This function is crucial for the overall effectiveness of payment networks, allowing businesses to accept electronic payments smoothly and efficiently.

Other roles mentioned, such as issuing cards directly to consumers or managing customer service for transactions, are typically associated with card-issuing banks or customer service departments rather than the back-end processing function. Therefore, the role that focuses specifically on transaction processing and clearing for acquirers aligns precisely with what a Back-end Processor does, making it the correct choice.