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On the way to Payment Facilitator Model

Payment facilitator model implementation might be a profitable step for many present-day software platform providers. If a software platform provider starts offering merchant services in addition to the platform itself and assumes responsibility for merchant onboarding, provisioning, and funding, as well as for reconciliation and chargeback handling, it removes part of the ...

Smart Processing Cost Reduction Strategies

Transaction processing costs do not only include merchant services processing fees. Other cost items, related to transaction processing, include indirect costs and opportunity costs. However, those who want to reduce their processing costs often focus only on the first of the listed components. They try to negotiate lower fees with the current processing partner or shop around ...

Transaction Processing Cost Reduction through Smart Negotiations

What components does transaction processing cost include? Knowing the correct answer to this seemingly trivial question may be the key to effective cost reduction strategy. Many companies face significant problems when it comes to transaction cost reduction, because they resort to the most obvious solutions, focusing on the transaction processing cost itself. They negotiate ...

Acquirer, Processor, Gateway: Who is who?

What are the differences between an acquirer, a payment gateway, and a payment processor? This is a common question that is more and more difficult to answer in the realities of the modern merchant services market. Technically, a credit card acquirer is a bank, whose risk department decides whether to issue merchant accounts to applicants. An acquirer also ...

Credit Card Processing without a Merchant Account

Credit card processing without opening a merchant account is a dream of those who are unable to go through background verification because of problematic business history or to provide the necessary data needed for this verification (such as tax ID or SSN). In practice, however, in order to accept credit card payments, a business has to open a merchant account or go through ...

ISO versus Payment Facilitator: Who Survives?

If you are an independent sales organization, you might be able to take advantage of becoming a payment facilitator. There are several factors speaking in favor of such a transition. Many present-day payment facilitators benefit from combining merchant services and gateway services in one offering. In this way they can receive both gateway fees and merchant services fees, which ...

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