A payment service provider, also called a PSP, is a company that provides online merchant processing services. Primarily, a PSP is meant to connect your business to multiple payment methods and act as a single-payment gateway to allow you (as the merchant) to sell services or products to your customers.
Typically, this means managing all the different technical connections, and relationships thereof, between your business, banks, and other payment networks. Thus, allowing you more freedom to operate your business without having to worry about establishing said connections directly.
Why is it so important that you choose the right one? Well, a proper PSP should allow you to do whatever you like without ever having to worry about risk management, transaction payment matching, fund remittance, fraud protection, and so on.
Think of PSPs as a shadow that works behind the scenes to deliver a simple payment experience that you and your customers can trust and depend on — acting both quickly and efficiently to make modern-day commercial transactions possible. More on this below:
The Benefit of Payment Processors
The obvious benefit of payment processors is the fact that it ensures that merchants get paid. PSPs handle everything for you in this regard. It authorizes the settlement of payment, it facilitates the transfer of funds between the customers’ accounts to the merchants’ account, and it even takes care of any potential issues that may crop up along the way.
Of course, not all payment processors are created equal. Some focus more on the basic transfer of funds whilst others expand their services to encapsulate a wide-arching support service that merchants can depend on to protect themselves from economic instability.
A great example of the latter is a company called Platinum Payment Systems (also called PlatPay.) Platinum Payment Systems is a PSP that plays a key role in the facilitation of fund transferring but it’s also known to be the PSP to choose if you’re looking for high quality support services. PlatPay, after all, is known to prioritize their relationships with their clients first and foremost — so that they can anticipate and moderate their clients’ needs and issues as they come.
In the words of Jed Morley, a managing partner of Platinum Payment Systems, PlatPay’s goal is, “…to help others solve their payment processing problems — regardless of the size of their business, or what they need to do to handle risks and to balance the different types of payments they receive.”
How do Payment Processors Work?
There are several ‘technical aspects’ that you may want to consider before choosing the right PSP for your business. The most important are mobility, security, and technical compatibility:
- Mobility: In a modern era, on-the-go payment solutions are more important than ever, and it may be vital for your business specifically that the payment processor you choose offers quick check-out solutions for mobile mediums.
- Technical Compatibility: Depending on what you already have working for processing payment solutions, technical compatibilities may be an important factor to consider — especially if there are highly technical aspects of your business that require that extra special attention.
- Security: Lastly, a payment provider system should have the proper certifications and meet the requirements to pass the Payment Card Industry Data Security Standard (PCI DSS.) This is to ensure that your customers are protected from both fraud and identity theft.
PSP Contracts and Fees
Rates are something that you need to talk to your chosen PSP about. As merchant processors provide varying contracts and fees — not just in comparison to each other but depending on the needs of their clients. Platinum Payment Systems, as an example, works directly with merchants to ensure that their rates are perfectly tailored to suit their needs.
Bottom Line: How to Choose the Right PSP for Your Company?
It’s certainly not easy to choose the right PSP for your business. It requires a lot of research and deliberation to make sure that your PSP is suitable for the type of business you intend to create or grow.
But, if you have the time, the best thing to do is to approach one of these PSPs — whether it be Platinum Payment Systems or another, and ask them directly what they can do for you. A PSP with your interests in mind will tell you up-front how they can and cannot help.
