A Payment Service Provider (PSP) provides online stores with the services and software required to accept electronic payments via credit cards, direct debits, bank transfers etc. Usually the PSP serves as a single payment gateway for the online merchant to accept payments from his customers in whatever way they choose to pay. The term “PSP” actually covers much more than simply being a payment gateway.
What does a Payment Service Provider Do?
A PSP connects to card companies, multiple acquiring banks and payment networks. In most cases the PSP will handle the technical connections and relationships between the different parties involved in completing the payment including external networks and bank accounts. In this way the online merchant can rely on their payment service provider to make these connections and not worry about the technical process of accepting payments. This is especially important when you are running an international business. Some PSP’s provide additional services by gaming payment processing other next generation payment methods including wallet payments, cash payments, vouchers, cryptocurrency payments and other digital formats.
List of the top 10 online payment service providers
| Rank | Name of Company | Description | Country |
|---|---|---|---|
| 1 | PayPal | A widely accepted online payment system that allows users to transfer funds, pay for goods and services, and receive payments. | United States |
| 2 | Stripe | A platform for online payment processing that allows businesses to accept payments and manage transactions from their websites or mobile apps. | United States |
| 3 | Square | A mobile payment service that enables users to accept credit card payments using their smartphones or tablets. | United States |
| 4 | Adyen | A payment service provider that allows businesses to accept payments in a variety of currencies and through a variety of payment methods. | Netherlands |
| 5 | Skrill | An e-wallet that allows users to transfer funds, pay for goods and services, and receive payments. | United Kingdom |
| 6 | Payoneer | An online payment service that allows businesses to receive and make payments globally. | United States |
| 7 | 2Checkout | A payment platform that provides online businesses with a range of payment options for their customers. | United States |
| 8 | Authorize.net | A payment gateway that enables businesses to accept online payments, and manage their transactions. | United States |
| 9 | Worldpay | A global payment processing company that provides businesses with a range of payment services, including card payments, alternative payments, and fraud and risk management. | United Kingdom |
| 10 | Braintree | A payment platform that enables businesses to accept payments online, in-app, and in-person. | United States |
Why do online businesses need to accept card payments?
Making purchases and payments online is one of the easiest methods of completing a transaction online. When your business is internet based you can’t simply accept cash from your customers as you would with a high street business. Neither can you accept a credit card payment in the same way you would in a brick-and-mortar store. Instead you need the services of a PSP to process the payment, keep a record of payments and help you handle any payment disputes that may arise.
Accepting Online Payments – Made Easy
With the technology and services that exist today accepting online payments doesn’t have to be an issue. All you have to do is choose which service you want to work with. A common payment system for online retailers with a high-volume of business is the merchant account. If you have the tech resources to handle your company’s payments and security you could simply open a merchant account and directly process payments. This requires more time and money spent on your company’s infrastructure but your rate will probably be better than with a payment processor.
We at GBO can help you choose the best high-risk payment service provider for your company that will meet your business needs and the regulation requirements. This is especially important if you are running an online e-commerce, gaming, media, forex, affiliate or drop-shipping business.
What Does a Payment Gateway Do?
A payment gateway for online gaming is part of the “front-end” processor which handles communication and transferring data for credit card purchases from the payment portal (point of sale, website, mobile etc.) to the acquiring bank. The “back-end processor” then takes over and the transaction is cleared and settled on behalf of the acquiring bank. Sometimes the acquiring bank also acts as the back-end processor. The payment gateway merchant service is provided by e-commerce application service providers. The payment gateway’s main role is to see that the credit card is authorized. Banks or specialist financial service providers act as a payment gateway for their customers.
A payment service provider (PSP) is a business that allows merchants to accept electronic payments for goods or services. PSPs act as go-betweens for merchants and payment processors or acquiring banks, supplying the technology and infrastructure needed to securely process transactions and manage payment data.
PSPs typically provide merchants with a variety of services such as payment gateway integration, fraud detection and prevention, recurring billing, and chargeback management. They may also offer value-added services such as data analytics, reporting, and marketing tools to assist merchants in expanding their operations.
A payment service provider’s overall role is to simplify the payment process for merchants, allowing them to accept electronic payments from customers while ensuring security, compliance, and convenience.
Principal characteristics of a payment service provider for high-risk industries
Payment service providers (PSPs) who specialize in high-risk industries typically provide a variety of features to assist their clients in managing their payment processing needs while mitigating the risks associated with their industry. A PSP for high-risk industries may have the following features:
- PSPs for high-risk industries should provide robust fraud prevention and risk management tools to reduce the risk of chargebacks, fraud, and other financial losses. Advanced fraud detection and prevention technologies, real-time monitoring, and transaction risk scoring are examples of such tools.
- Chargeback Management: PSPs should provide chargeback management services to assist merchants in resolving customer disputes and minimizing the impact of chargebacks on their business. These services may include dispute resolution, chargeback notification, and chargeback representation assistance.
- Customizable Payment Processing: High-risk merchants frequently have unique payment processing requirements that necessitate the use of specialized solutions. A good PSP should offer payment processing options that can be customized, such as the ability to accept multiple currencies, recurring payments, and ACH payments.
- API Integration: API integration is critical for high-risk merchants because it allows them to integrate their payment processing system with their existing e-commerce platform or other software solutions. Merchants can use this to streamline payment processing, reduce errors, and automate manual processes.
- Multiple Payment Methods: To accommodate different customer preferences, a good PSP should offer multiple payment methods such as credit cards, debit cards, ACH payments, and e-wallets.
- Compliance and Regulation: Strict regulations and compliance requirements apply to high-risk industries. PSPs should have a thorough understanding of these regulations and offer merchants compliance assistance to help them stay in compliance.
24/7 Customer Support: High-risk merchants require a PSP that offers dependable and responsive customer service, such as phone and email support, live chat, and an extensive knowledge base.
Overall, PSPs for high-risk industries should offer a comprehensive payment processing solution tailored to their clients’ specific needs. They should provide a comprehensive set of features that allow merchants to process payments efficiently, manage risks effectively, and comply with regulations.
