A payment processor is a service that will handle transactions on your behalf. This is where people can enter their card details thus enabling you to collect payment.
You want to use a payment processor because otherwise things get very complicated and somewhat risky. Handling payments yourself means making sure that you have the very tightest encrypted security, that you meet various standards and requirements and that you are able to gain the trust of buyers handing over their details. These are all huge stumbling blocks and especially when you’re just starting out. For those reasons it’s much safer to choose an existing payment processor.
And the best choice of payment processor will likely be PayPal (www.paypal.com) in the vast majority of cases.
The primary reason for this is the simple fact that the vast majority of people have PayPal. Remember: you need PayPal in order to use eBay and most people already use eBay. This then means that people will be able to buy from you by simply typing in their PayPal password rather than having to enter their card details which can be a slow and nerve wracking process if you don’t use the site in question often.
PayPal also has relatively low fees, great customer service and is generally very reliable. All this makes it the most simple and straightforward choice. If you’re looking to start making money fast with minimal obstacles and issues, then that’s exactly what you need.