Your Own Payment Gateway 101

Implementation of your own payment gateway involves many important aspects. Indeed, you can actually start accepting digital payments only after you build all crucial processes and partnerships. No matter, whether you choose to build your own custom payment gateway from scratch or license an off-the shelf solution.
So, let us take a closer look at the flavors of gateway solutions you can choose from.

4 types of your own payment gateway solutions

  1. Direct integration with the payment processor’s platform (possibly, a legacy one). The option works fine if you just need one acquiring partnership. So, if the processor represents a technical arm of your target acquirer, then integration might be the right choice.
  2. Your own payment gateway built in-house. The option is, probably, the most costly and time-consuming one. However, it provides the highest degree of control and unlimited opportunities for customization. In addition, it eliminates the need to pay gateway fees from the start.
  3. Licensed open-source code payment gateway product. This is a sort of a custom off-the-shelf solution, because you don’t have to build it from scratch. But, at the same time, you can add all the necessary features as needed using your own or licenser’s team.
  4. White label payment gateway solution. A classical white label gateway is yours only in name and logo. The third-party provider is the one who controls and manages it for you. However, this option is the cheapest one and, usually, it does not require you to worry about PCI compliance. In fact, it works perfectly fine for startups and SME with basic needs.

Now let us look through the top-priority aspects of a payment gateway implementation project.

10 key components of a payment gateway of your own

  1. Your target merchant category codes (MCC).
  2. Your target currencies and geographies. Check out our articles on multicurrency transactions and cross-border transaction processing for details.
  3. Acquiring relationships to enable merchant account services. Check out our article on the importance of acquiring partnerships.
  4. Processing platform or gateway that supports (or is ready to support) your target features and acquirers.
  5. Integration details and specifications, obtained from your acquirer.
  6. Provision of the integration specifications to your (or gateway vendor’s) development team.
  7. Clarification of costs, deadlines, and technical limitations with the actual providers of the future gateway service.
  8. The strategy of integration for potential new partners and merchants and partners. Plus, the strategy for migration of your current merchant portfolio.
  9. Clear agreements with the acquirer, gateway vendor, and PCI specialist.
  10. PCI assessment and, if necessary, PCI audit. This one is especially relevant if you want a custom gateway focusing on payment processing for internet businesses.
  11. Concluding remarks

    No two companies are the same. So, you need to define the concept of your own payment gateway solution, that best suits your business model. After that, you have to address the listed aspects. Only then you can initiate the payment gateway implementation process. A white label payment gateway solution might be the best option to start with. Moreover, if its source is licensable, then it might be the only solution you will ever need.

    Request a demo of our white label gateway product at United Thinkers or at UniPay Gateway. See for yourself, how it can increase your chances of successfully starting your own payment gateway.

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