# What is a Data Processing Agreement (DPA)?

A DPA is a contract with processors handling personal data. SMEs must ensure providers meet GDPR requirements and follow instructions.

Source: https://faqtic.co/glossary/data-processing-agreement

## Why it Matters for SMEs

- Clarifies responsibilities
- Ensures safeguards
- Reduces risk

## Example in Practice

SMEs sign a DPA with HR software providers like Factorial.

## Frequently Asked Questions

### When is a DPA needed?

Whenever a processor handles your data.

### Key clauses?

Security, sub-processors, breach notice.

### Where to store?

In your contracts repository.

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Canonical HTML: https://faqtic.co/glossary/data-processing-agreement