What is PSP?
Payment Service Providers(PSP’s)
PSP’s or Payment Service Providers are those third party organizations that help business owners to accept various kind of payments like net banking, credit card, debit card, e-wallets etc and makes sure that your transaction is made safely from one entity to other entity safely and securely.
1 : Customer enters card details and clicks on the “Pay”.
2 : A transaction request is sent to the payment gateway that has been signed.
3 : Then PSP verifies the customer’s card details and the availability of the funds in the customer’s account.
4 : After successful verification of the card details and availability of the funds, the PSP initiate a fund transfer from the customer’s bank to the merchant account.
5 : Finally at the end PSP sends a transaction notification to you & your customer.
6 : In case the transaction gets declined the reason such as invalid details or insufficient fund, PSP will cancel the transaction and notify that the payment failed.
Advantages of Using PSP
1 : PSP provide support for accepting several payment methods through single channel so that customer can choose according to their convenience from various options.
2 : PSP help in making secure transactions as the information that is sent is encrypted using SSL(Secure Socket Layer) which can be viewed by the customer only.
3 : PSP prevent fraud as after successful verification of the customer’s card details it transfers the amount .
4 : PSP provide support for accepting multiple currencies.
