Global payment processing competitive and regulatory pressures make it difficult to develop a payment gateway and it seems like an economically prohibitive task. Private labeling of gateway gives acquiring banks instant access to the technology needed to economically process payments in today's highly competitive environment.
Private labeling is the quickest method for a financial institution to take advantage of a payment processing for profitable ecommerce transactions. Acquiring banks find it makes complete business sense to private label a payment gateway and get immediate returns from it. A private label gateway is the best idea for banks that want to earn great profits from the ecommerce transaction processing demands at affordable prices.
What is a Payment Processing Gateway?
A payment gateway offers the link between an acquiring processor and merchants. The gateway gives merchants access for the authorization, settlement and management of credit, debit and other electronic transactions anytime, anywhere, via websites, at retail, and on wireless devices. The highly advanced payment gateways offer safe transactions through risk management and also provide fraud protection services to the bank. A payment gateway partner can also provide a variety of powerful online payment solutions to increase revenue, and improve profitability for the bank.
Payment Gateway Value Proposition to Banks
Private labeling a payment processing gateways benefit banks in following ways.
- Immediate time-to-market. By utilizing a private label payment gateway, banks can start processing ecommerce transactions instantly.
- Creating a gateway internally is very expensive and it could cost a bank up to $5 million. The investment required for a private label Level 1 PCI DSS certified payment processing gateway is less than 1% of the estimated internal development costs.
- New revenue sources for the bank. Along with acquiring, banks also charge merchants; transaction fees that help in building long term residual income streams with no risk.
- It brings access to new markets with no acquisition expense required by bank.
- In addition to acquiring merchant accounts, the gateway bring alternative payment processing options to obtain and retain ecommerce business accounts all over the world.
Beneficial Features of Private Label Payment Gateway
Sophisticated Fraud Management
- 150 variables to compare buyer data and identify patterns
- Online registration and authentication service
- Multiple security access levels with unique pre-defined roles
- Three-D protection to authenticate cardholder identity
Load balancing allows merchants to run multiple merchant accounts through one gateway to simplify account reconciliation and reporting.
Multi-currency is standard feature of private labeling a processing gateway.
Payment Chargeback Management
- Online dispute presentment & management
- Electronic chargeback presentment
- Chargeback analysis and chargeback triage
- Regular interchange analysis service
- Fraud mitigation consulting service