The importance of a Payment Service Provider (PSP)
As a webshop owner, it goes without saying that you would like customers to buy your products or services. Of course, you then also want them to be able to pay for these products or services. Conversely, customers want to be able to do this as easily as possible through a payment method they trust. By using a Payment Service Provider (PSP) you can offer payment methods such as iDEAL, PayPal and credit card payments on your webshop. Are you not (yet) using a Payment Service Provider? Then you will have to manually add the payment methods you want to offer to your webshop. To do this you will have to arrange the agreement and implementation for each payment method yourself. This does not only take a lot of time, but also involves a lot of costs. Fortunately, PSPs offer a solution for this. They have knowledge of how online payments and technical implementations should be arranged and thus take this process out of your hands.
The advantages of a PSP
A PSP ensures that your entire payment process is arranged in one place. For example, customer payments are temporarily placed in a third-party account of the PSP. A small part is reserved for possible returns. Ultimately, you will periodically receive all payments in one go from the PSP. This saves you as a webshop owner a lot of time and headaches. But there are more advantages. We have listed the most important ones for you below:
● Overview: Thanks to a PSP, you can see exactly which payment belongs to which order.
● Security: For both you and your customers, a PSP offers safe, fast and efficient online payments. They can also identify potential instances of fraud.
● Cost-effective: Because Payment Service Providers have contact with banks, credit card companies and other parties, they can ensure that you pay less per transaction. ● Currencies: With a PSP, you can accept payments in different currencies allowing you to offer your products or services worldwide.
● Integrations: You can easily integrate a PSP with most webshop software.
Payment solutions: Some Payment Service Providers offer payment solutions such as the ability to add a payment link in an email.
Administration time: You benefit as a webshop owner from a shorter administration time so you have more time to do what you do best.
What are the costs of a Payment Service Provider?
In most cases you have to pay transaction fees when you use a PSP. This consists of a combination of a small fee and a percentage charged on each transaction. The cost of this varies by Payment Service Provider and thus depends on the one you choose. Usually the cost varies between 1.5% and 3.5% per transaction. Another possibility is to take out a subscription with a PSP. This way, you pay a fixed amount monthly and less per transaction.
How do I choose a PSP for my webshop?
There are many different Payment Service Providers to choose from. This can make it very difficult to decide which one is most suitable for your webshop. To make a good choice it is important to list the different providers. Do not only mention the name of the provider, but also the costs and what they offer. Next, it is wise to have a certain budget in mind prior to your search. You can already cross out providers that fall above this. Finally, draw up a list of requirements that the PSP must meet. Those that do not meet these requirements can be crossed off again. In the end, you are left with a list of far fewer providers. From this you can now make a choice.
Can I link a PSP to my accounting software?
This is certainly possible and will even save you a lot of time. With a link between your Payment Service Provider and your accounting software you make sure that payments are automatically processed in your administration. Do you also have your webshop software linked to your PSP and accounting software? Then payments can be made automatically.
Linking your PSP and accounting software with Combidesk
Need help connecting your PSP to your accounting software and webshop? Combidesk can help you! Thanks to Combidesk, you will have a ready-made connection between your systems for a fixed monthly fee. This leaves you with valuable time to do what you do best. Check out the possible accounting, payment and web shop connections from Combidesk.
This blog is written by Combidesk.