White Label Payment Gateway: Merchant Acquirers and ISO Sales Partners
Ask any merchant and they would agree that a payment getaway plays a significant role when it comes to processing credit card transactions. When a customer swipes their credit card or makes an online purchase, it is the payment getaway that processes the card’s data sends it to the payment processor securely for authorization.
This transaction information is submitted to the credit card networks and then routed to the issuing bank of the cardholder for the payment to be approved or declined. This response is transmitted in reverse to the payment gateway, confirming the merchant if the transaction is approved or declined.
How Do Payment Gateways Work?
Payment gateways include interfaces and tools through which the merchant collects the information of the credit card transaction from the customer. Most gateways provide APIs allowing the POS devices, websites, software, or mobile app to integrate and send transactions to the gateway for the purpose of authorization.
Getaways also offer virtual terminal capabilities enabling the credit card information to be entered into a web page for submitting a transaction. These getaways include value-added features such as tokenization, reporting, recurring billing, PCI compliance, fraud detection, etc. making the transactions easier.
Payment Gateways and Merchant Acquirers
Payment gateways partner with merchant acquirers and ISOs for reselling the payment gateway services to other merchants. An ISO or merchant acquirer is a company that sells merchant services and employs a sales team for promoting their services to merchants.
Most merchant acquirers don’t build and maintain their own payment getaway. Instead, enter into reseller agreements with payment gateways for promoting and reselling the payment gateway services.
There is an alternative to this. Instead of reselling or promoting someone else’s brand, merchants or ISOs can use the white label merchant services and enjoy more control.
What is a White Label Payment Gateway?
A White label payment gateway performs the same way as other regular payment gateways but with a few differences which makes it more advantageous than the regular payment gateways.
A regular gateway contract requires the merchant or ISO to resell the payment gateway of their brand. The white label payment gateway works differently. It allows the merchant acquirer to sell/brand the payment gateway services as their own.
The merchant acquirer gets to use its logo and customize the look and feel, making them a payment gateway of their own.
Benefits of White Labeling
You must be wondering why to work with a white label payment facilitator?
Becoming a provider of the white label payment gateway services instead of being a reseller has its own benefits. You can set your margin and generate a steady revenue stream.
You can build your brand, market your business and improve your business’s visibility. You can also control the customer relationship by offering great support services to deliver a great customer experience.
These are some of the benefits of using white label payment gateway services:
· No need for building and maintaining the service by yourself. Infrastructure, compliance, and security — everything has been taken care of already!
· Use the shopping cart integrations and use the processor connections of the platform to offer more features to your customers
· Enjoy greater control over customer relationships. It is up to you to determine how to sell and service the getaway technology
· Enhance the value and reputation of your brand by putting all the work in
· Strength the relationship with your merchants and meet and exceed their needs
Who Are These Services For?
Now that you are familiar with the benefits of the white label merchant services, ask yourself if you are the type of business that can benefit from these services. Well, these 4 types of resellers would fit their gateway model the best:
· Independent Software Vendors (ISVs)
· Value-Added Resellers (VARs)
· Independent Sales Organizations (ISOs)
· Pay-Facs (such as Square or Paypal)
If your business fall within this category, work with only that white label payment gateway platform that has been in the business for a while.
How to Find a Reliable White Label Partner
It’s imperative to find a provider who can give you what you need so that you can meet your merchant’s needs. Before finalizing a provider, these are some questions you must ask yourself:
· Do they have enough training materials?
· What type of support services are available?
· Is the platform easy to use?
· How reliable is their platform?
· Does the provider sell their services to merchants directly?
Learn About the Branding Options
to make the platform of the white label payment service provider your own and customize it, make sure you ask what branding options are available so that you can brand the payment gateway as your own.
These are the things that will help you control your branding: APIs, URLs, logo, font, color scheme, marketing collateral, and portal’s login. It is best to ask about the customizability before signing a contract with the provider, especially if you want more control.
What Types of Merchants Can Use The Gateway?
The good news is anyone can use the white label merchant services. However, not all providers agree with this. Therefore, it is best to ask the payment getaway provider if they offer the freedom to board the merchants you wish to do business with.
Inquire about the third-party integrations available, SDKs, and APIs. Ask these questions:
· Who will handle the merchant’s billings?
· Who is responsible for the SSL certificate?
· Who will be the owner of the domain name?
· How is customer support handled?
· What shopping cart integrations are available?
The best white label payment gateways will be packed with features that others aren’t offering. Do your research and list down all the providers out there. Compare their features and pricing and opt for the one that brings the best value for money.
Ready to ditch the old system that involves reselling and worrying about keeping the merchant happy? The white label payment gateway is for you. It will give all the freedom needed for promoting your brand and provide more control over the customer experience.