Tag: Payment facilitator UK

Difference Between Payment Gateway & Payment Facilitator and Merchant Account

Why business is running? It is running for profitability! A company offers service/product and customers pay to consume them. This is how it goes on. But, when it comes to e-commerce business, accepting payments from the customer is a very important element. The more important it is, it should be the simplest too. Here we are discussing different payment cycles such as payment gatewayUK and payment facilitator. There is a difference between them. Let us try and understand.
Before we start to understand the difference between these terms, let us have a look at some important parties that are involved in the payment transaction.

  1.        Business that accepts card payments [the merchant]
  2.        Buyer under whose bank account a card has been issued [the cardholder]
  3.       Bank that has issued your customer’s credit card [the issuing bank]
  4.       Bank that processes the customer’s credit card payments for the merchant [the acquiring bank]

Starting with a payment facilitator UK, it is also and generally known as ‘PayFac’. It is a third-party payment services provider (PSP) for merchants. Typically, a payment facilitator has a contract with the acquiring bank and onboards merchants on a sub-merchant platform.

Whereas a payment gateway UK is service that helps merchants accept payments online, which is essentially any payment method other than cash or cheque. A customer/buyer presents a card or digital wallet to pay for goods or services. The payment goes through a gateway which links the customer’s bank or card brand to the merchant account so funds can be transferred between these accounts.

Importance of Gateway

The significant role of a gateway is that it verifies customers’ account information to either successfully process or decline transactions. It becomes important for businesses to have a secured, safe and reliable payment gateway as it is responsible to transmit such sensitive personal information (of customers/ buyers). It needs to be highly secure and capable of fending off attempts to steal valuable information.

Cardstream is one of the leading service-providers and bestows smart, secure, and scalable outsource payment processing and gateway solutions for various companies and organizations. For more information, visit – Cardstream.com.
Originally posted at- https://bit.ly/2N2lv55

Smart, Secure and Scalable Payment Gateway Solutions for Your Business

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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