Wednesday, March 14, 2007

Online Payment Services Provider (PSP)

Increasingly organizations are looking for ways to collect payment for goods and services online. To accept Credit Card Payments online you will need to obtain an Internet Merchant Account and an Online Payment Services Provider (PSP).

Online payments can be fast convenient way for your users to pay for goods and services over the Internet using their credit card, debit card or other methods. For example:
  • You may wish to accept payment for events such as conferences online
  • You may wish to fundraise via your website
  • You may have publications or other merchandise to sell

Advantages of collecting payments online include:

  • Convenience
  • Immediacy
  • Potential to reach a wider audience and hence more "customers"

UK Payment Service Providers provide software that allows card details to be processed, and acts as a gateway between your e-commerce system and the banks. The UK PSP takes payment details from your customer, checks the details with the appropriate bank, and sends the result of the check back to your system. Authorization or rejection of the transaction is completed within seconds, so you know whether or not to proceed with your customer’s order. The PSP also takes care of the final settlement of the transaction (i.e. when the money is paid into your merchant account).

Here is a UK Payment Service Provider: Axiar PSP