Payment service providers (PSP) operate a payment gateway or payment processor service. They offer your business a single payment gateway through which you can accept electronic payments by multiple payment methods. This is especially suitable for businesses that are regarded as high-risk by legacy banks.
With a good PSP, your online business can receive payments via bank transfer, credit card, e-wallets etc. The PSP allows these electronic payments to be made swiftly, easily and conveniently by your clients. Examples of good payment service providers include PayPal; Authorize.Net; Google Checkout; Amazon Payments; Dwolla and others.
The service not only processes the payment but can also keep a record of which client has paid, how much, and when. With a PSP you have an ongoing record of your online transactions and can refer to it in the event of a dispute or misunderstanding with your client over payment. With the many payment service providers available, accepting online payments does not have to be a headache. Finding the right payment service provider (PSP) for your particular business is vital to your business’s success.
The leading PSPs manage the technical connections between multiple acquiring banks, payment networks and credit cards. With a PSP your business will not have to connect directly with each individual financial institution and network; this makes doing international transactions a lot easier. In addition to managing the technical connections and providing a single payment gateway for your clients, some PSPs can also process next-gen payment methods like cryptocurrencies; e-wallets, vouchers and prepaid cards.
As you can see, a PSP is much more than a payment gateway. A payment gateway is a technical solution to making payments while a PSP provides a full-service including the technical payment process; wide range of payment methods; maintaining the technical contacts with banks, card networks etc.; reports; direct checkout; fraud prevention and more.