Payment Processing Industry

A PSP functions as the intermediary between banks, your business, and your customers. This allows you to confidently accept your customers’ preferred form of payment. With a PSP, you can depend on this payment arriving securely in your bank account.

Your PSP can help you ensure PCI compliance. This means that cardholder data stored by your business, including names and card numbers, is secure. Businesses can be proactive in protecting data by using strong passwords and updating their antivirus software regularly. Meanwhile, your PSP will maintain PCI compliance on the payment end of your business. This includes tokenizing payment information and protecting your business by putting fraud prevention measures in place.

What is a PSP?

Your PSP is where you will purchase or rent credit card terminals and mobile swipers. If you have an online business, they will seamlessly integrate with your eCommerce store. Virtual terminals let you accept payments online or key in payments over the phone.

Who Is Considered a Merchant?

A merchant represents a person or company that sells goods or services. Merchants can sell items in-person or online (sometimes called an eCommerce merchant). Most merchants today operate both in-store and online.

What is a Merchant Account?

A merchant account is a specialized bank account created for business purposes, allowing companies to make and accept electronic payments, including credit and debit card transactions, with the assistance of a payment gateway.

Different Types of Merchants

eCommerce Merchant

A merchant who sells items online.

Retail Merchant

A merchant who sells items that they purchase from manufacturers.

Wholesale Merchant

Merchants/manufacturers who sell items to retail merchants.

Affiliate Merchant

Merchants who use affiliate networks to sell goods.

Direct-to-consumer Merchant

Merchants who sell items to consumers that they themselves create.

Products offered by Payment Services Providers

Contactless Payments

Accept Contactless Payments fromNFC enabled Cards/SmartPhones.

Credit Card Terminals

Share QR and collect payments across any UPI App.

Virtual Terminals

Manage and view Payments of all your business Outlets.

Mobile Payments

Accept Contactless Payments fromNFC enabled Cards/SmartPhones.

eCommerce Solutions

Share Payment Links and collect your Payments.

Payment Gateway

Clear Bulk/Individual payments from your dashboard.

How do Payment Services Providers ensure payment security?

Merchant Services Providers use measures such as PCI compliance, tokenizing payment information, and fraud prevention to create a secure payment environment.

PSP Technology

A PSP grants you the technology and information your business needs to optimize operations. You can learn a lot about your business from the payment data provided to you by your PSP.

Which customers are spending the most time and money with you?

What times of day, month, or year are you collecting the most payments?

Are there products or services on which you could increase your revenue?

Fees charged by the PSP

Setup Fee

Equipment Fee

Monthly Fee/Service Fee

Transaction Fee

Credit Card Processor Fee

Payment Processing Pricing

Flat Rate
Interchange-Plus
Direct Interchange
Tiered Rates

Suitable for small retail businesses and startups with a low sales volume, the flat rate is a fixed percentage that’s based on a charge when processing payments. This pricing model is quick and easy to set up and has the best ease of use

Setup your chatbox

Each credit card issuer such as Mastercard and Visa has specific interchange rates for each card type whether it be CNP or Card present transactions. With the interchange-plus pricing structure, the processor adds a markup to the interchange and takes a cut out of each sale.

Register account

A direct interchange fee is one where the merchant charges a one-off monthly fee without any percentage rate. It’s not the best for small businesses that generate low volumes of sales.

Tiered Rates

Tiered rates are grouped in different structures that separate each card type(Visa, Mastercard, Discover). It’s not the most convenient for small to medium-sized businesses. Since the fees fluctuate this is not an ideal option for B2C transactions.

*Additional Fees that may be applicable:

Account fees
Minimum processing fee
Statement fee
Account setup fee
Cancellation fee
Chargeback fees
NSF fee
Early Termination fee