What is a payment service provider (PSP)?
Whether you are an online store operator, a provider of digital content or an organization with an online donation form – just about anyone who wants to accept payments on the Internet would be well advised to use a payment service provider. This largely automates the payment process, while at the same time offering the buyer a wide range of payment methods to choose from.
A reliable payment service provider is an important building block for online business. Novalnet’s many years of specialization in the smooth processing of all currently popular payment methods is a guarantee for over 12,000 satisfied customers.
DefinitionA payment service provider (also known as a payment service provider, payment processor, payment gateway or PSP for short) is a company that provides payment services – the complete >technical processing of a wide range of payments – for e-business companies, i.e. online merchants, and brick-and-mortar retailers. To this end, the merchant’s systems are technically linked to the PSP. This enables payment processing with the desired payment methods. These can include popular payment methods such as invoice, SEPA direct debit, payment by instalment or card payment with credit cards such as Visa, Mastercard & Co and EC card. Furthermore, a PSP also offers payment methods from e-payment such as Sofort or giropay and wallets such as PayPal, Apple Pay, Google Pay, etc. for store integration. Alternative payment methods such as telephone payment, mobile payment, prepaid cards or micropayment are also possible. And for some time now, with the help of some PSPs, online retailers have even been able to offer their customers the option of paying for ordered online purchases with cash at the supermarket checkout or in the drugstore.
Advantages of a payment service provider (PSP)Online store operators, e-business entrepreneurs and bricks-and-mortar retailers can either select and implement each payment method themselves or cooperate with a payment service provider that offers these bundled services from a single source. The latter option is particularly worthwhile for Internet portals with many or high-turnover transactions that are complex to manage and require a lot of resources. In the case of a successful online store or e-business, cooperation with a reliable PSP will pay off within a short period of time, as successful orders happen due to greater security and payment options.
A good payment service provider with a full-service offering saves merchant’s work and costs. It bundles contracts and technical connections and thus combines a wide range of services under one roof. This means that merchants do not have to sign various contracts with different companies (banks, credit card acquirers, providers of fraud prevention modules such as collection companies, affiliate platforms, providers of PCI-compliant platforms, etc.) with different terms and fees. Advantage: no different contract terms, no long processing times and cost transparency.
By using a PSP, merchants and sellers can thus reduce their costs in terms of integrating and processing a wide variety of payment methods and at the same time increase the attractiveness of their sales platform and their sales figures, as the diversity of payment methods available for selection is attractive to buyers. Security for the merchant is increased, as there is often a shift of risk to the PSP in the event of non-payment. In addition, the merchant benefits from the industry expertise of the PSP.
Contact us
As a payment service provider, define the specifications for your e-commerce project together with us and we will take care of the rest. Based on your business model, store system and depending on the range of goods, we provide you with all the necessary system components along the digital value chain quickly and easily. In doing so, we keep the “time to market” factor as low as possible, from the first contact with us to the live activation of your payment interfaces. We not only focus on your actual payment portfolio, but also ensure even greater security and higher revenues before and after the actual payment process. Our upstream fraud modules better protect your online business from potential fraud attempts, and after the payment process we make sure that your revenue stays with you. If you wish, we can automate your dunning process and ensure that your receivables are realized – if necessary, by involving our collection partners. And this without additional costs.
As a payment service provider, however, we attach great importance to service first and foremost. Our technical department and support staff will help you with any questions you may have and, above all, with the integration of all payment modules (we are currently the only payment service provider to support payment interfaces for over 100 systems). We don’t just leave you out in the cold with meaningless interface descriptions, but make sure that your sales platform or store is quickly online and working productively.
Fair conditions
Novalnet is a Payment Service Provider with fair conditions: We only grow when your business grows. Our principles as a payment service provider are simple: we are not satisfied until you go live with your sales platform. We only earn when your project generates revenue. We want to retain our customers through satisfaction, not contract terms.
As our customer, you can flexibly put together your customized package of payment methods, fraud modules, collection services and additional services such as subscription management or member management. As a payment service provider, we can also provide you with a free administration tool for billing your affiliates if you wish. You don’t have to choose standard packages at standard prices and can adapt your payment solution to current business developments at any time.
The dynamic e-commerce environment requires rapid adjustments by all players. Here we are your right partner with short ways and fast reaction times. As a payment service provider, Novalnet is happy to be the driving force behind your e-business.
Tasks of a Payment Service ProviderThe PSP primarily provides the technical connection of the online store or website to the various payment methods in the payment provider’s portfolio. This integration can be realized via ready-made payment modules for store and e-commerce systems or flexible interfaces for all systems and programming languages.
In many cases, the PSP takes over the central control of payment transactions. He advises the merchant on which payment methods are recommended for his sales markets and customers and takes over the management of acceptance contracts, i.e. the authorization to offer a certain payment method in the store. If desired, the PSP can take over the processing of customer payments and the management of customer funds received, ideally in escrow accounts.
Services of a payment service providerThe service of pure payment settlement for the merchant is supplemented by some payment service providers, for example, with fraud prevention modules, payment guarantee and receivables management. Novalnet is a full-service payment provider for e-commerce projects and stationary sellers and offers a total of more than 15 services relating to classic payment processing. The portfolio of payment methods includes, for example, invoice and SEPA direct debit (on request with 100 percent payment guarantee to prevent payment defaults in both B2C and B2B business), instalment payments, and subscription payments. Novalnet offers all payment types as a white-label solution. Other services offered by Novalnet as a full service payment provider include risk management, integrated accounts receivable management, automatic invoice generation, and professional receivables management and collection.
A payment service provider coordinates all the processes required to process payments:
Contract Management
- The PSP provides the merchant with acceptance contracts from selected cooperation partners and processes the contracts in full for the merchant.
- As a payment service provider, it is the link between the individual payment methods and therefore avoids a flood of special contracts with countless providers.
- The PSP offers the merchant a complete table of conditions from a single source and saves him from price negotiations.
Technical connection
- The PSP provides the merchant with plugins and other integrations for easy connection of payment methods to their e-commerce system (Magento, SAP, WooCommerce, Shopware, etc.).
- Using pre-built payment windows and API, the PSP significantly simplifies the complex integration of payment systems into the merchant’s sales platform.
Management and display of sales
- The PSP shows the merchant all sales for all payment methods used on a cumulative statement from a single source.
- The PSP provides the merchant with a clear, real-time overview of the status of all payments in statistics and dashboards.
- The PSP provides the merchant with data exports and reports to support his accounting.
Securing payments
- The PSP provides the merchant with numerous security modules to secure each payment.
- The PSP embeds security systems directly into the payment methods for its customers, providing a high level of confidence for the buyer in the security of the payment.
- The PSP works with debt collection companies and credit agencies to provide additional receivables and risk management.
Less effort, more sales
Using a payment service provider thus offers the advantage of all technical payment services from a single source. With a single point of contact and a single contract, merchants can complete the steps that they would normally have to carry out separately with countless banks, credit card companies, service providers and partners. They save time, money and nerves through the uniform management of their transaction data, statements, prices and accounting processes. In addition, they benefit from the extensive know-how of the payment service provider and can also rely on a solution that is always up to date with the latest technology and legal requirements in the event of new challenges, developments and trends.
