Forex Payment Service Providers (PSP) and Payment Gateways
Those new to e-commerce often ask themselves, what is a Payment Service Provider / PSP? The answer is that in today’s world we can make online payments with our credit/debit cards, scan QR codes, and even authorize payments from electronic wallets using email. Solution providers that use this software as a service (SaaS) model to delivery such technology to businesses are known as Payment Service Providers or PSPs.
What is a PSP and Payment Gateway in the World of Forex Trading?
An easy way to understand a PSP is that it behaves like an online payment processing service, or merchant, something important to remember when shortly discuss payment gateways. Examples of online payment merchants are: PayPal, Visa MasterCard, WeChat Pay, Netteller, and Skrill. Basically, when you pay for something online, a PSP makes it possible for this transaction to happen, serving as an intermediary between yourself and the vendor.
PSP technology has been vital to the growth of online payments, also known as e-commerce (think Amazon), making it possible for international businesses to transact via multiple channels and currencies as well as reconcile their accounts seamlessly. This leads to a follow up question, namely what is a Payment Gateway? Additionally, what is the difference between a Payment Gateway and a PSP?
A Payment Gateway refers to a standard communication protocol between payment channels (POS, web based, etc.) and a receiving bank. In our definition of a PSP, we explained that it can be looked at as a merchant. A payment gateway is a single point of access for multiple merchants.
Payment Processing For Forex Merchants
Running a forex brokerage is complex. Jurisdictional regulations can be disruptively inconsistent, and high transaction volumes tend to be an innate characteristic of the industry. The best forex payment processing providers are usually equipped to meet the distinct trade requirements of its clients and also be flexible enough to adapt to a constantly changing marketplace.
Each forex broker, however, is unique, meaning that different features are required. For this reason, the ideal payment gateway for forex brokers should offer flexibility. Effectiveness of payment processing is the lifeline for all stakeholders in the industry. Hence, to drive success, brokers must choose the best forex forex credit card processing merchant that meets their unique needs and regulatory obligations.
Atomiq Consulting – Guidance in Selecting Forex Merchant Accounts, PSPs, and Payment Gateways
At Atomiq Consulting, we leverage our extensive experience in the financial services industry and long standing relationship with globally reputable PSPs to help our clients match their business with the best suited payment processing services. Our PSP and payment gateway solutions are available to both regulated and unregulated, non-licensed forex brokers.
Over the years we have seen a direct correlation between the choice of PSP and profitability of the FX brokers we work with. At a first glance, payment gateways might all seem alike, however, there are significant differences with regard to jurisprudential coverage, supported payment channels, and customer service systems.
To learn more about our forex credit and debit card processing and PSP services, don’t hesitate to contact us.
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