Other than marketing strategies, gaining traffic and advertising, what is the most important element of running an e-commerce business? An element that is directly associated with the profitability- ‘Payments’. Yes! An element of accepting payments from customers is very important. There are different paymentgateway UKmethods that businesses adapt to receive payments from customers. We are discussing two terms here. One is payment processing which is outsourced and second is payment facilitator.

Before we try to understand the models of payment gateways. It is important for us to understand a few terms. The merchant, that refers to the business that accepts card payments. The cardholder, it is the buyer under whose bank account a card has been issued. The issuing bank, that has issued your customer’s credit card. And, the acquiring bank -the bank that processes the customer’s credit card payments for the merchant.

Outsource payment processing

In any organization, ‘payments’ is a business-critical phenomenon that must be processed with high security. When the payment processing of any online retailer or e-commerce business is outsourced to professionals, advanced data analytics tool is utilized to detect suspicious patterns in online transactions. There are certain algorithms that are designed to track online payment activities. These algorithms are responsible when it comes to compare the fresh data with historical data and check for similarities with previous fraudulent transactions.

Payment Facilitator

Have you ever heard or read the term PayFac during any payment related conversations or related documents? Well, this is a short term for payment facilitator. It is basically a third-party payment services provider (that we also call PSP in short) for merchants. Typically, what happens is, Payment facilitator UK has a contract with the acquiring bank and onboard merchants on a sub-merchant platform. This payment gateway model allows businesses to offer merchant services quickly and efficiently.

People can find many service providers claiming to offer the best solutions. It is important to choose the best out of all. Cardstream is one of the leading service providers that offer different payment gateway UK solutions to different clients. People get smart, secure and scalable solutions for payment gateway for their companies and other organizations. For more information visit – Cardstream.com.

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