The Data Processing Agreement, or DPA for short, is a legally binding contract between a business and a third party data processor, meant to regulate data privacy in regards to GDPR compliance.
Any business that has an online presence relies on third parties to function properly. Those third parties can be anything from an email provider to a website analytics tool or a chat tool, etc; basically, any tool that processes the user’s personal data.
A Data Processing Agreement needs to be signed between that business (Controller) and each third party (Processor) making sure that the data is stored properly and is not being misused, sold, or vulnerable to attacks. This is one of the most basic steps toward being GDPR compliant.
The majority of these third-party tools make DPAs available on their websites to be downloaded and signed. The signed DPA can usually also be requested via email.
In case you need to create your own data processing agreement, the official template can be downloaded from https://gdpr.eu/data-processing-agreement/. Any organizations may use this document in order to be GDPR compliant and to avoid expensive fines.
The Data Processing Agreement applies to businesses that store and/or process data from the European Union and addresses the following issues in regards to the Processor:
More elaborated information regarding this can be found here: https://gdpr.eu/article-28-processor/.