Payment Service Provider
While having the facility to receive payments from your website processed by the credit card networks you need to apply to an approved Payment Service Provider, known as PSP. A payment service provider is a third party that allows merchants to receive a wide variety of fund transfer by a single channel. The payment service provider works with acquiring banks, also known as payment processors to manage the complete transaction process from start to end. This means that the payment service provider is responsible when a customer supplies their credit card information, to the moment the funds reflect in bank account of the merchant.
All the merchants save money whose job is as a payment service provider, as the fee for using a payment service provider is lesser than the cost involved in incorporating individual payment types. This is why the payment service provider accepts bulk processing discounts.
Payment Service Provider Functioning
Payment Service Providers join hands with acquiring banks to offer the capability to accept payments for merchants. Payment Service Providers offer services in addition to processing transactions. These services are readily include Payment Card Industry Data Security Standard (PCI-DSS) compliance, fraud protection and the ability to process different currencies and languages.
Their function is to incorporate your e-commerce website with the international credit card networks so that orders generated by your selected shopping cart software can be authorized and payment collected for you. This fund will be transferred to your merchant account.
Services of a Payment Service Provider
A payment service provider offers many services for accepting, processing, and ultimately managing payments safely. A true payment solution include the below mentioned services in one integrated solution:
To accept credit or debit card payments, a merchant needs to start with a merchant account. A payment service provider can support you with the application process and even save the merchant time and efforts by applying on their behalf. Some payment service providers provide access to aggregated merchant accounts. These are known Sub-Accounts created for each merchant under the payment service provider’s existing account with the acquiring bank. This is an easier and quicker way of getting payment services running, as the payment service provider’s account is already approved.
The payment service provider offers support for a wide spectrum of payment modes, with one simple integration. Merchants don’t require to decide payment methods individually. While working with a payment service provider, a merchant can easily receive payments from credit cards, debit cards, mobile money, mobile wallets, and much more.
The payment service providers not only support multiple payment methods, but they also support multiple currencies. This facilitates easy and quick global fund transfer. This is possible if the payment service provider has a partner acquiring banks that offer services for the desired currencies.
Security is the principal aspect when we talk about online transactions. Actually, in present scenario, more than third of buyers are hesitant to make online shopping because of fear of theft.
PCI-DSS is a mandatory certification for all the businesses to handle credit card information. The primary needs of the business has a secure network and protects cardholder data by a variety of different measures. Merchants can fulfill these requirements by opting a different fund transfer or payment page hosted by a PCI DSS compliant PSP.