What is the role of a third-party payment processor?

The role of a third-party payment processor is primarily to facilitate the transfer of funds between the buyer and the seller during a transaction. This involves handling various aspects of the payment process, including authorization, transaction processing, settlement, and sometimes fraud protection. By acting as an intermediary, the payment processor ensures that the payment is securely processed and that both parties can complete their transaction efficiently and safely.

In this context, the other options do not accurately reflect the main function of a third-party payment processor. While creating contracts and negotiating terms could be part of a business transaction, those functions are typically outside the realm of payment processing. Overseeing compliance with quality standards pertains more to regulatory or operational roles rather than the transaction processing performed by these payment systems. Thus, option C accurately describes the core responsibility of a third-party payment processor in managing the transactional flow of funds.