<?xml version="1.0"?>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
	<periodOfReport>2003-08-21</periodOfReport>
	<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0001016277</issuerCik>
        <issuerName>NATIONAL PROCESSING INC</issuerName>
        <issuerTradingSymbol>NAP</issuerTradingSymbol>
	</issuer>
	<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001234980</rptOwnerCik>
            <rptOwnerName>CORY STEVEN C</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity></rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
			<isDirector>0</isDirector>
			<isOfficer>1</isOfficer>
			<isTenPercentOwner>0</isTenPercentOwner>
			<isOther>0</isOther>
			<officerTitle>Executive Vice President</officerTitle>
		</reportingOwnerRelationship>
	</reportingOwner>
	<nonDerivativeTable>
		<nonDerivativeTransaction>
			<securityTitle>
				<value>Restricted Stock</value>
				<footnoteId id="F1"/>
			</securityTitle>
			<transactionDate>
				<value>2003-08-21</value>
			</transactionDate>
			<deemedExecutionDate>
			</deemedExecutionDate>
			<transactionCoding>
				<transactionFormType>4</transactionFormType>
				<transactionCode>A</transactionCode>
				<equitySwapInvolved>0</equitySwapInvolved>
			</transactionCoding>
			<transactionAmounts>
				<transactionShares>
					<value>10000</value>
				</transactionShares>
				<transactionPricePerShare>
					<value>20.27</value>
				</transactionPricePerShare>
				<transactionAcquiredDisposedCode>
					<value>A</value>
				</transactionAcquiredDisposedCode>
			</transactionAmounts>
			<postTransactionAmounts>
				<sharesOwnedFollowingTransaction>
					<value>10000.00</value>
				</sharesOwnedFollowingTransaction>
			</postTransactionAmounts>
			<ownershipNature>
				<directOrIndirectOwnership>
					<value>D</value>
				</directOrIndirectOwnership>
				<natureOfOwnership>
					<value/>
				</natureOfOwnership>
			</ownershipNature>
		</nonDerivativeTransaction>
	</nonDerivativeTable>
	<derivativeTable>
		<derivativeTransaction>
			<securityTitle>
				<value>Stock Options</value>
			</securityTitle>
			<conversionOrExercisePrice>
				<value>20.27</value>
			</conversionOrExercisePrice>
			<transactionDate>
				<value>2003-08-21</value>
			</transactionDate>
			<deemedExecutionDate>
			</deemedExecutionDate>
			<transactionCoding>
				<transactionFormType>4</transactionFormType>
				<transactionCode>A</transactionCode>
				<equitySwapInvolved>0</equitySwapInvolved>
			</transactionCoding>
			<transactionAmounts>
				<transactionShares>
					<value>10000</value>
				</transactionShares>
				<transactionPricePerShare>
					<value>0</value>
				</transactionPricePerShare>
				<transactionAcquiredDisposedCode>
					<value>A</value>
				</transactionAcquiredDisposedCode>
			</transactionAmounts>
			<exerciseDate>
				<value>2004-08-21</value>
				<footnoteId id="F2"/>
			</exerciseDate>
			<expirationDate>
				<value>2013-08-21</value>
			</expirationDate>
			<underlyingSecurity>
				<underlyingSecurityTitle>
					<value>Common Stock</value>
				</underlyingSecurityTitle>
				<underlyingSecurityShares>
					<value>10000.00</value>
				</underlyingSecurityShares>
			</underlyingSecurity>
			<postTransactionAmounts>
				<sharesOwnedFollowingTransaction>
					<value>10000.00</value>
				</sharesOwnedFollowingTransaction>
			</postTransactionAmounts>
			<ownershipNature>
				<directOrIndirectOwnership>
					<value>D</value>
				</directOrIndirectOwnership>
				<natureOfOwnership>
					<value/>
				</natureOfOwnership>
			</ownershipNature>
		</derivativeTransaction>
	</derivativeTable>
	<footnotes>
		<footnote id="F1">Restricted Stock Grants are made pursuant to the National Processing, Inc. 2001 Restricted Stock Plan.  The restrictions lapse on one half of the shares on the second anniversary of the grant date and the restrictions lapse on the balance of the shares on the fourth anniversary of the grant date.</footnote>
		<footnote id="F2">These Stock Options were granted under the National Processing, Inc. 2000 Stock Option Plan.  The options generally expire ten years from the date of grant and one-third of the option becomes exercisable on each of the first three anniversaries of the grant date.</footnote>
	</footnotes>
	<remarks>
	</remarks>
	<ownerSignature>
		<signatureName>By: Carlton E. Langer, Attorney-in-Fact</signatureName>
		<signatureDate>2003-08-25</signatureDate>
	</ownerSignature>
	<ownerSignature>
		<signatureName>By: Carlton E. Langer, Attorney-in-Fact</signatureName>
		<signatureDate>2003-08-25</signatureDate>
	</ownerSignature>
</ownershipDocument>

