What does PSP stand for in payments?

Definition of a PSP PSPs, or commonly known as Payment Service Providers, are third parties that help retailers accept payments from their customers.

What is the difference between a PSP and an acquirer?

A card acquirer maintains the merchant’s account to accept payments for them, whereas a payment processor is only responsible for processing payments; merchants are not dealing directly with the processor during the payment process. A merchant may choose to work with both the acquirer and a PSP.

Is an ISO a payment facilitator?

Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem.

How does PSP work?

After a customer enters his card details and clicks ‘pay’, a transaction request is sent to the payment gateway you’ve signed up with. The PSP then verifies the customer’s card details and checks whether the customer has enough funds in their card account to make the payment.

Is PayPal a ISO?

PayPal uses 3-character ISO-4217 codes to specify currencies in fields and variables.

Is a PSP a payment processor?

PSPs: Payment Processor Definition They allow merchants to interact with banks and other financial entities so that they can exchange payment information to accept various payment methods such as credit card payments and debit card transactions.

What is the role of a PSP?

PSPs provide support for several payment methods through a single channel, ensuring your customers can conveniently choose from a variety of options. Integrating different payment methods such as online banking, credit cards, debit cards, and e-wallets to your business can incur costs.

Is an ISO a merchant acquirer?

An ISO is a company that markets acquiring services to merchants on behalf of an acquiring bank. An ISO is similar to an independent insurance agency. Some payment processors also operate as ISOs — the processor sells on behalf of an acquiring bank. Some ISOs call themselves acquirers.