Payment provider / Payment service provider
Payment providers are companies that organize cashless payment transactions for their customers. In addition to the so-called classic payment service providers such as banks and credit institutions, there are now also an increasing number of companies that specialize in payment processing on the Internet and offer PayPal and other online payment services in addition to the usual payment methods such as EC or credit card payments. Online retailers are increasingly turning to full-service payment service providers that offer them and their customers a wide range of payment methods.
Modern payment providers / payment service providers on the Internet
Internet commerce is booming and, as a result, secure cashless payment for Internet purchases is becoming increasingly important. So-called e-payment providers or e-payment service providers enable large and small store operators to process payments with their customers in an uncomplicated and secure manner. The procedure is very simple: the customer can register, usually free of charge, with a payment provider on the Internet. Provided that the online store in which this customer subsequently wishes to order has a contract with this payment provider, the purchase can simply be made. The customer only needs to enter his protected user data and can thus pay without having to provide bank details or a credit card.
Overview of the various payment providers
There are a large number of payment service providers on the market, which can be divided into different categories. On the one hand, there are the intermediaries for merchant contracts (credit acceptance contracts) without their own contract company number, who work exclusively for large companies. In addition, there are the so-called sub-acquirers or third-party billers. This procedure is not recognized in Germany, as each store operator must pass its own risk test if it wishes to offer credit card payments on its website. Sponsored merchants in the USA, for example, can use third-party billing if they are unable to conclude a direct credit card acceptance agreement with the credit card acquirer. So-called payment service providers do not issue or broker credit card acceptance contracts, nor are they sub-acquirers. Merchants who already have a merchant contract but for whom linking their store to the credit card company is too costly turn to this payment provider. The payment service provider then interposes itself and processes the transactions of many different merchants, often offering numerous other payment systems in addition to the option of credit card payment.
