Only merchants choose a PSP. Or do PSPs also choose their merchants?
Oh, this subtle relationship between payment service providers and merchants. Who serves whom? Who establishes the rules and who obeys them? Who sells who purchases? Who convinces and who accepts to be convinced?
Today let’s explore the relationship between a PSP and a merchant. PSP is an abbreviation for a payment service provider, so it provides a SERVICE to merchants. Does this mean that only merchants choose their payment service provider? To answer this question let’s have a closer look at the payment service provider and its interaction with the merchant.
Can a PSP be picky towards its merchants? Is it a good or a bad thing? Why it should do so? A payment service provider is usually an organization with an established relationship with both banks and merchants. It is a medium that connects two nodes in a system of online payments: banks and merchants. It is a must for a payment service provider to maintain these relationships with banks and merchants. It is an environment where a PSP controls the flow of transactions and makes sure they are smooth and seamless so that card user can use their cards easily and spend on merchants’ websites more.
It is not a secret that the profit of a PSP comes from the commission it takes from the merchant’s sales volume. Naturally, the more merchants are using the PSP’s services the greater the sales volume is. The bigger the volume is the bigger the revenue for the PSP is. So why a PSP would refuse to onboard some merchants at all?
Well, it is not only about the profit. It is also about security. Simply put, a PSP has 4 tasks: establishing and maintaining the relationships with the banks and establishing and maintaining the relationships with merchants. So, when making a decision about onboarding a new merchant, a trustworthy PSP always makes sure that adding the new merchant to the PSP’s network will not jeopardize existing merchants.
It is also about trust; a PSP is looking to establish a long-lasting fruitful relationship with the merchant. It is rooting for the merchant’s success and revenue increase and supports the merchant at every step of the way. It is a joy for a PSP to see a merchant grow from a startup to a big profitable company. Such a beneficial and long-lasting relationship starts from simple polite interaction that helps to build trust and understand both parties’ needs and positions.
Here at Billmont, we care about our merchants. To ensure and maintain the relationship with merchants and banks allowing seamless transaction flow and mutually beneficial partnership we choose our merchants with scrutiny and remain committed to our partners. Looking for a trustworthy and safe PSP provider who can support you on every step of your growth? Please apply to Billmont.