As the name suggests the payment gateway is the door to accepting a payment and passing that payment instruction to the merchant account and in turn the customer’s issuing bank. A gateway will provide a form for the card/payment data to be entered. The cost of using a gateway tends to be low, since it’s role, although imperative, is less costly. They might charge a fixed fee or a percentage fee but that fee is on top of the merchant account (payment processing) fees.
The deciding factors for Gateways tend to fall along the same line for acquirers, with a core focus on customization and user control. Since there are PSPs that offer an all-in-one solution, they are an alternative to a gateway, acquirer partnership solution; with some all-in-one solutions bundling the gateway for free.
Saving Money with your PSP
The trick to saving money with your PSP is to understand your needs and adjust accordingly. A large number of merchants simply don’t know what options are out there, so they stay with large players, not knowing the opportunities offered by smaller competitors. Outside of simple education, actively communicating with PSPs will shine a light on options that aren’t on their listed pages. A simple conversation could save you money every year.
As the payments industry modernizes, we see some PSPs offering both acquiring and gateway services. This provides the advantage of centralized services for merchants, although, this can mean less flexibility than choosing two distinct service providers.
When choosing a PSP, a merchant should know what they want to prioritize, be that customization/integration, rates or centralization. Merchants might see the perceived cost of overall services increase with the inclusion of gateway options. In reality, it eliminates the cost for an external gateway service and can in fact save money!
Comparing PSPs with Shuttle
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