What is a Payment Service Provider?
A Payment Service Provider, commonly known as a PSP, stands as a versatile alternative to the traditional merchant account and payment gateway setup. Unlike the latter, a PSP offers a comprehensive service that includes both technical payment processing and fund collection. This all-encompassing approach extends to managing contracts with banks and card acquirers, as well as overseeing the settlement of collected funds.
Key Functions of Payment Service Providers
Payment Service Providers integrate various electronic payment methods such as credit/debit cards, e-banking, and e-wallets. The beauty of opting for a PSP lies in its ability to seamlessly integrate with multiple payment methods across a single platform, making it an ideal solution for both national and international transactions.
The Role of a Payment Service Provider in Transaction Processing
In essence, payment service providers collaborate with acquiring banks (payment processors) to handle the entire transaction process. Here’s a brief breakdown of how the transaction unfolds:
Customer initiates payment.
Transaction details are sent to the acquiring bank.
Information is transmitted to the credit card network, which forwards it to the issuing bank.
The issuing bank decides whether to approve the transaction and communicates the decision back to the credit card network.
The credit card network relays the decision to the acquiring bank, which, in turn, informs the payment service provider.
Once authorised, the issuing bank transfers funds through the credit card network to the acquiring bank for deposit into the PSP’s merchant account.
Advantages of Choosing a Payment Service Provider
Single Contractual Relationship: Establishing a relationship with a PSP grants access to various banks and payment methods through a single contractual agreement.
Fraud Prevention: PSPs often come equipped with their own fraud prevention resources and are compatible with third-party anti-fraud services.
Flexible Addition of Payment Methods: Adaptable to changing business needs, PSPs allow for easy integration of new payment methods as technology evolves.
PCI Compliance: Reputable PSPs handle PCI certification, saving costs for merchants and ensuring compliance.
How Payment Service Providers Benefit Your Business
Payment Service Providers streamline the payment process, allowing you to concentrate on your core business activities without worrying about payment logistics. By accepting various payment methods, including credit cards and Direct Debit, PSPs ensure you don’t turn away potential customers, ultimately boosting sales.
Payment Service Provider vs. Payment Gateway: Understanding the Difference
One common question revolves around the distinction between Payment Service Providers and standalone Payment Gateways. Unlike payment gateways, PSPs manage contracts with banks and acquirers directly, providing a comprehensive service that encompasses payment processing and fund collection.
International Payment Services Providers
Merchant Advice Service (MAS) collaborates not only with UK-based Payment Services Providers but also has access to international solutions, catering to businesses across Europe, China, and Australia. Our experts can guide you on accepting multi-currency transactions through international Payment Services Providers.
Automated Billing Services
Merchant Advice Service, in collaboration with industry experts, offers automated billing services, streamlining monthly paperwork and invoicing for businesses. Speak to our advisors to explore how bill payment service providers can work for you.
Start Your Internet Payment Services Provider Application Today
MAS advisors are ready to assist you in finding the ideal Payment Services Provider for your business now and in the future. Discuss your requirements with us today, as we provide intermediary-based access to Payment Services Providers.
How Merchant Advice Service Can Help
Merchant Advice Service collaborates with industry experts to provide tailored advice for merchants seeking the right PSP. Whether you are looking for national, international, high-risk, or third-party PSP solutions, our advisors can guide you through the process.
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