What is a PSP?
A payment service provider (PSP) connects many acquiring banks and card issuers to allow online businesses to handle large amounts of transactions at once without having to rely on financial institutions to handle the connections individually.
How it Works?
Normally, if you shop online, payment is transacted using debit /credit card information on the seller’s website through the payment service provider, which acts as a gateway between seller’s web server and the seller bank account to verify your card and account information and the funds are credited into the seller’s bank account. A certain amount of charges are applied for you or the seller by the payment gateway and the bank also has a fee for monthly services or per transaction for the currency exchange.
The procedure above is to give you an outline to understand the process of payments through payment service provider’s (PSP) during online shopping.
Here is the list of some PSP’s we use at Young Cow
PayPal -Enables businesses too securely; conveniently and cost-effectively receive payments online.PayPal is more popular among the auction sites like eBay.
Wordplay -Supported by Royal Bank of Scotland Group. One of the Europe’s largest payment services providers and the first UK bank to provide full internet banking services.
Sagepay -UK’s fastest growing with 30% of market share, transacting for 27,000 businesses aiming for secure and easy payments.
Moneybookers-Low transaction fees with high payment security. Instant payments – money can be transferred to your bank account as soon as it is received.
Payment sense-Guarantees lowest cost online trading in UK, capped rates and easy integration. Secured in processing on-line credit and debit card payments.
Are the only ones? No for an increased list visit: http://www.electronic-payments.co.uk
What are the typical charges?
The costs of electronic payment systems involve: Set up cost, annual cost, monthly, PSP, transaction charge, bond. Be aware of hidden costs.
|20£/month unlimited transactions,alternatively transaction basic fee range 1.4% – 3.4% + £0.20*.More details: paypal.com||Available from 20£/month up to 1000 transactions per quarter.More details:yoursagepay.co.uk||Charges range from €0.50 to €1.80 and is among the cheapest in industry.More details:moneybookers.com||Charges are collected each week and once a month in accordance to WorldPay fixed terms and condition. More details:worldpay.com||Capped charges 10£/months free transactions up to £50k each year, 15£/months free transactions up to £250k each year. More details: paymentsense.co.uk|
The free online and electronic payments diagnostic tool will calculate the likely cost of some of the market leading UK payment solutions for you available on: http://www.electronic-payments.co.uk/pricing.jsp
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