Typical Payment Solutions
Face to Face
A common, simple-to-use way to accept payments. There are a wide variety of types to choose from including stand-alone, mobile and smart terminals.
Over the Phone
Start taking payments over the phone securely with a Virtual Terminal, a web-based interface to connect to the world of electronic payments. Virtual Terminals are ideal for taking payments over the phone or by email order, particularly if you don't have a card.
Online Shopping Gateway
If you require integrated payment solutions then you need to consider linking to a hosted pay page or fully integrate payments with your website for more control. We can help you understand what's available.
Every website has a story, and your visitors want to hear yours. This space is a great opportunity to give a full background on who you are, what your team does and what your site has to offer. Double click on the text box to start editing your content and make sure to add all the relevant details you want site visitors to know.
If you’re a business, talk about how you started and share your professional journey. Explain your core values, your commitment to customers and how you stand out from the crowd. Add a photo, gallery or video for even more engagement.
Traditional Payments Explained.
The Card Brands and Networks
The backbone of the payment industry is the card brands - Visa, Mastercard, American Express, and Discover - they are responsible for the networks that connect all the players. They continuously work behind the scenes to control where credit cards are accepted and oversee transactions between the businesses and credit card issuers.
The card brands are also responsible for creating and enforcing the rules that govern credit card processing, aptly named the Payment Card Industry Data Security Standard, or PCI for short. These rules ensure that anyone who handles credit card information does so with the utmost security.
Issuing Banks
While the card brands provide the networks and security standards, they do not actually issue credit cards. That is where the issuing banks come in. Issuing banks are financial institutions such as Bank of America or Royal Bank of Canada that provide credit cards to consumers on behalf of the card brands.
The issuing bank is responsible for financially backing the transactions made by the consumer or cardholder. Providing funds for the cardholder carries inherent risk, which is why issuing banks charge a fee for every transaction. The issuing bank acts as the middleman between the card network and the acquiring bank to determine whether the transaction will be approved or declined.
Acquiring Banks
As the issuing bank is the consumers' bank, the acquiring bank is the business's bank. These financial institutions, such as Wells Fargo and First Data, accept and process credit and debit card transactions on behalf of the business.
The acquiring bank enters into a contract with the business to provide them with payment acceptance and processing. The business and acquirer agree that the acquirer will settle the daily card activities balance into the business' bank account, minus any reversals, interchange fees, and acquiring fees.
Acquiring banks set up the business with a merchant account and are responsible for the financial risk associated with processing credit cards and secure transmission of data.
Payment Service Providers
Now here is where things can get a little tricky. Payment Service Providers (PSP) provide the business with a merchant account similar to the acquirer; however, PSP's do not provide the financial backing for the business. That part is still reserved for the acquirer. PSPs provide the business with a merchant account, connect them to a payment gateway, and facilitate payment processing.
The PSP may also be responsible for providing the services businesses need to accept payments, such as terminals or digital checkouts.
Independent Sales Organizations
Independent sales organizations (ISO) are third-party payment processing companies authorized to handle merchant accounts and act as intermediaries between businesses and their banks.
ISO's have unique relationships with financial institutions such as Wells Fargo and First Data that essentially allow them to resell their services. The banks provide the financial backing while the ISO is responsible for handling the business activities, such as setting up the merchant account, providing the payment technology, and assisting with the business's processing needs.
As you can see, there is a lot at play here in the payments industry. At this point, you may be wondering, "who are these gateways, PSPs, and ISOs you speak of?". You may have thought nothing in payments is simple; however, there is a company that can do all three.
Q. What is Worldwide Pay?
A. Your agnostic advisor.
Worldwide pay are payments experts. Dedicated to providing merchants with payment transparency. We understand the strengths and weaknesses of each provider and work with merchants to advise the best provider for their individual requirement.