August 24, 2016
CNP Expo: Should I go with a PSP?
May 21, 2014
When a merchant considers signing up with a Payment Service Provider (PSP) to conduct their business transactions, the merchant must make sure that the company’s name appears on the document seen during the transaction, a panelist at the CNP Expo in Orlando, Fla. today pointed out as a difference between PSP’s and traditional ISO’s.
“One of the things a merchant gives up is their own name in the charge account,” said Mark Standfield, of fraud and chargeback prevention company Ethoca. “That will create more chargebacks and more fraud. Not only that, some purchases can be rejected because the PSP isn’t working well.”
A PSP is an aggregator processing payments on behalf of submerchants, Stanfield noted. PayPal is a PSP, for example. Merchants, however, must be careful to research how a PSP functions before signing up. If a potential customer is sent to another Internet page, they might reconsider the purchase.
And, making a decision on what PSP to use only on price is dangerous, said Rey Pasinli, executive director of Total Apps Inc.
“Interoperability is one of the key things these days,” Standfield added.
Security and ease of making payments are important, but the PSP must also advance the marketing strategy of a product, like allowing chats. Larger merchants can set up their own systems and offer online chat with customers.
“When considering a PSP, it’s not just about payments anymore,” said Loc Nguyen of Feedzai.