Payment Service Providers (PSP) work with payment processors to manage electronic payment transactions. The PSP handles everything related to one making an electronic payment on an online website or an application. It works with a payment processor to do this so. Without a payment service provider, we won’t be able to make payments electronically, thus, closing the doors for online shopping and acquiring services.
PSP – Explained
First and foremost, if you’re going to accept credit and debit card payments on your e-commerce site, you need to open a merchant account on the acquiring bank. This process can take quite some time. The payment service providers take care of the business. In fact, a PSP can make multiple applications, saving you time to focus on your online business.
Also, some PSPs can offer an aggregated merchant account. These work as sub-accounts on the PSP’s existing account with the acquiring banks. You can think of this as a big pie and you’re taking one slice of it. This way, you won’t have to open accounts in the acquiring banks. Overall, this process takes significantly less time so it might be the best option for you if you’re trying to get things working as soon as possible.
Related Article: Payment Method Preferences by Country
Payment Service Provider Support
A PSP will take care of more than just processing payments. Even if the payment method of your customers is different than what you accept. While you would normally add different types of payment methods, it isn’t the case when working with a PSP. The payment service provider will simply accept multiple payment methods and the funds will be forwarded to your account.
The same goes for different currencies than what you accept as long as the PSP you’re working with has a partnership with the acquiring banks that processing services for the currency of payment. This way, you are basically going to accept currencies that are outside of U.S. Dollars—moving your online business to an international scale.