A payment system is a service used to transfer funds from one account to another. Owing to such platforms, users can pay for goods and services on the Internet. In the gambling industry, payment systems serve as an intermediary between online casinos and their customers. With their help, gamblers replenish deposits and withdraw funds won to personal accounts.
Compared to traditional banking services, payment systems have several advantages. Among them are:
1. The simplicity of an account opening. The process can be done remotely and within the shortest terms.
2. Access to a wide range of currencies including cryptocurrency.
3. Fast international payments. The verification time and the "depth" of the identification of payments don’t take as long as in banks, although it may depend on the amount of payment. Transfers process takes only a few minutes or seconds—the same for international payments.
4. The possibility of issuing international payment cards;
5. Worldwide account management via the Internet, including mobile applications.
6. Payouts to the account of any bank in the world.
7. Loyalty to non-residents.
What factors should one consider when choosing a payment system?
When collaborating with payment providers, you should always remember of the risks of choosing a weak partner and, as a result, getting a low conversion, the low-quality technical part, and a manager that is hard to contact.
Each payment system uses its methods of encryption and data transfer. It is data encryption, and more specifically, the technical algorithms with which it’s implemented, that is the primary criterion for assessing the security of any payment system. The second important parameter is authentication, namely the set of operations that the user must perform to gain access to their registered electronic account. In many payment systems, to log in one has to enter his password and download an individual file that contains a unique key. User authentication is achieved using 3D security technology when a user receives a one-time confirmation code on the phone. Last but not least, many payment providers have built-in systems for recognizing and preventing fraudulent transactions.
For international online merchants, the geography of the payment system must coincide with the location of all potential customers of the company. Businesses that work with globally need to pay attention to payment providers that provide an extensive list of payment methods. Maybe you don't need all of them now, but it will be an advantage in the future. For such merchants, it is mandatory to offer the acceptance of payments by bank cards of international payment systems: American Express, JCB, Diners Club, UnionPay.
Knowing how the fees are formed, you could optimize your payment instruments which will affect the growth of your business. Also, a competent payment provider will be interested in long-term relationships with you, increasing your conversion rates and capital turnover.
What parties are involved in the process of payment transmission:
1. Acquiring Bank.
2. International payment system(Visa, MC).
3. Issuing bank.
4. Payment partner such as a payment gateway or payment aggregator.
Typically, a merchant pays a combination of the following fees: a transaction, interchange and fixed fees (e.g. acquiring bank commission), as well as unforeseen expenses. If your business is high-risk, the international payment system charges an additional cost for refunds and chargebacks. Each party involved in the transaction chain charges one of these types of fees.
Other fees that you may face with:
• Unsuccessful transaction fee.
• A one-time fee for payment gateway onboarding and a monthly fixed fee for usage of the system.
• Flat fee.
In different countries, the conditions for withdrawing money vary, so before choosing a payment service, make sure that it allows you to make timely payments and cash out from your account. It is also essential to pay attention to the timing of the payouts. Weekly payout is the most common scheme.
For successful performance, technical support staff must combine the right set of technical knowledge with human interaction skills. The chosen payment system must provide a team of employees ready to solve any money issue in the shortest possible terms.
The bottom line
The popularity and fame of payment service providers in the market do not mean that their services are suitable for any business. To find a partner company that will have all the necessary set of payment instruments and satisfies the price of services is a challenging task. But we expect that these simple tips will help you to solve some difficulties.