August 24, 2016
CNP Expo: Should I Go With a PSP?
May 21, 2015
Processing payments through a Payment Service Provider (PSP), also known as a payment facilitator is an option used by many merchants that need to enter a new market rapidly. At a panel discussion on the last day of the 2015 CNP Expo in Orlando, Fla., several PSPs discussed considerations that need to be made when merchants are evaluating partners to assist in facilitating global payment acceptance.
“It’s not about what’s right or what’s wrong, it’s about what’s the right option for your business,” said Greg Leos, general manager of North America for GlobalCollect eCommerce. “Merchants get confused with all of the different terms: ISO, Acquirer, PSP, hosted pages, etc., but what’s really important is knowing your business and your consumers and planning for the next five years. You need to know what you’re selling and who you’re selling to, first and foremost. Additionally, you need to know what markets you want to enter and how they will interact with your business and what payment options your customer base will want to use.”
Eric Benayoun, vice president of product for PayItSimple, said he would advise merchants to look at a particular metric to help them decide if a PSP is the right way for them to go.
“Understanding your average ticket size will help you know the best option for your business,” he said. “This will help you understand which payment method is the best option for you to accept and what your customers will want to pay with.”
Leos said the best way for a merchant to evaluate its options is to meet personally with as many of them as possible.
“Come to a show like the CNP Expo,” he said. “An RFP is a terrible way to start the process and the only focus will be on price. By attending a payments conference like this one, you can meet companies face to face and soak up the education and information from your peers and from each of the prospective PSPs to help you down the path that will eventually lead you to RFPs, but you will be more informed of your choices first.”