Payments Space in Today’s World
With the increasing consumer confidence, we assume, a benefit of the pandemic, payment processing has improved.
Payments are becoming more transparent, simple, and efficient as online transactions increase. This shift has left merchants and payment processors with a lot of untapped potential. Independent payment service providers, or PSPs are shifting away from solely providing gateway services and moving towards acting as acquirers.
What’s Changed?
If you choose an all-in-one solution, you don’t need to set up a separate merchant account or payment gateway. Merchants will benefit from the increased speed of payments and the bundling of services.
Merchants can save money and improve the quality of their payments by using a PSP which offers both gateway and acquiring service. Is an all-in-one solution or using separate service providers better for your payment needs?
The Merchant Account Provider / Acquirer
From the customer’s point of view, the acquirer is the one who holds the merchant account. They also receive payments from the bank of the customer. It comes with its very own set of terms and fees but is usually defined by the features and rates that merchants want. Merchants can negotiate with their PSPs bespoke agreements. Different PSPs base their rates on the volume of transactions made by merchants. The larger margins are usually made by the acquirers, so this is where most partnership deals take place. This is not possible with legacy, incumbent players.
A service that is tailored to seasonal or other cyclical models of business can also be a deciding factor. A larger PSP may have difficulty communicating with merchants. However, a smaller PSP will be able to provide more customized solutions.
The Payment Gateway
Payment gateways are the doors that accept payments and pass them on to merchant accounts and then to the issuing banks of the customers. A gateway provides a form to enter the card/payment information. A gateway’s cost is low because its role, while essential, is not expensive. The gateway may charge a percentage or fixed fee, but this fee is added to the merchant account fees (payment processing).
Some PSPs offer an all-in-one solution, which is an alternative to a gateway and acquirer partnership solution. Some of these solutions bundle the gateway for free. Some PSPs offer an all-in-one solution. This is an alternative to gateways and acquirer partnerships. Some all-in solutions bundle the gateway for free.
Save Money With Your PSP
Understanding your needs and adjusting accordingly is the key to saving money on your PSP. Many merchants don’t realize the options available, and so stick with big players. They are unaware of the possibilities offered by smaller competitors. Active communication with PSPs can help you discover options not listed on their pages. You could save money each year by having a simple conversation.
Some PSPs are offering gateway and acquiring services as the payments industry continues to modernize. Merchants can benefit from centralized services, but this may limit their flexibility compared to choosing two different service providers.
When choosing a PSP, a merchant should know what they want to prioritize, be that customization/integration, rates, or centralization. Gateway options may increase the perceived costs of services for merchants. It can save you money by eliminating the need for an external gateway.
This post was written by a professional by Exzact Business Solutions. TRANSPARENT | AFFORDABLE | SIMPLE merchant services Downtown St Petersburg fl, Websites, and Social Media Done Right. Exzact Business Solutions are on a mission to educate local businesses to ensure smiles, savings, and solutions. Exzact clients save an average of 30% on their processing alone. No Contracts, Free Equipment, Local Support, No Rate Increases, and More. Exzact Business Solutions’ goal is to educate the local business community in order to ensure smiles, savings, and solutions. Exzact Business Solutions is an Independent Sales Organization with strategic partnerships dedicated to cultivating reliable and trustworthy relationships in the Payment Card Industry, allowing us to tailor products and services to the needs of each merchant. Contact EBS and see what a difference having the right advocate can make!
