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.
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.
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