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UniPayGateway

June 12, 2014
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights.

My works have been cited across media and payment blogs. I do my best to help businesses make the most efficient financial decisions that can positively and significantly improve their business growth.

Whether you are a seasoned investor or just starting out in the world of payments, my writing is designed to be accessible to everyone and help people navigate the complex world of payments. So if you want to stay up-to-date on the latest trends and insights in the payment industry, be sure to check out Paylosophy and my published works.

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. On a regular basis, I work with a team of knowledgeable technical people in the space, and I am passionate about finding creative solutions to the challenges presented by the Payments Industry.

I would be happy to help with any questions you might have regarding credit card payment processing, merchant services, EMV certifications, the various ways of becoming a payment facilitator or a payment platform, as well as any other Payment Industry related issues you might be struggling with. Feel free to follow me on Quora, and don’t hesitate to send me links to the specific Quora questions you would like me to answer.

Three players of merchant services industry

Due to expansion of merchant services industry we are witnessing nowadays, many businesses involved in payment card industry (credit card processing) in this or that way, face the temptation of switching to payment service provider operation mode, in order to increase their revenues.

To become a payment service provider it is not sufficient for a company to acquire as many potential clients (merchants) as it can. In order for the future payment service provider to actually start operating, it needs to establish three groups of relationships with different types of entities. Beside relationships merchants, the company is going to get involved in relationships with payment gateway services providers, as well as in relationship with acquiring banks.

Why each type of relationships is a necessary?

Establishment of each type of relationships is a necessary step a company needs to undertake on the way to becoming a real payment service provider, because the aforementioned relationships facilitate creation, conveyance and collection of payments. Creation of payments is associated with the specific environment from which transactions (or payments) are submitted. Conveyance of payments must be conducted using respective payment gateway software. Collection of payments calls for a necessity to establish relationships with some bank in order to transfer the funds to merchants.

Each of the listed three components requires separate mechanisms to be implemented by a business wanting to assume the role of a payment service provider. A more detailed description of creation, conveyance and collections can be found in the respective article “Payment Service Provider Relationships” at Paylosophy.com web-site.

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