White Label for Payment Systems (PSP)
- Why White Label model is suitable for payment systems
- Advantages of White Label - payment system
- What to pay attention to when using White Label - payment system
Why White Label model is suitable for payment systems
Several participants interact when making a payment via the Internet
- merchant, which provides goods or services and to whom the client pays
- bank;
- processing system;
- payment system, which is the link between these three participants.
If you sell goods and services and accept payments through the Internet, the payment system becomes an indispensable link. It’s not always possible to create your own payment system. Then you can use a ready variant. In this case, the payment system provides you with services. Implementing White Label you will use your own brand. Consequently, the client will think that you use your own payment system.
If the bank wants to launch acquiring for merchants, it can also use an off-the-shelf solution and use a White Label payment system.
Advantages of the White Label payment system model
White Label has a lot of advantages. They can include:
- Cost. White Label will cost less than developing your own system;
- Timing. Since you are offered ready product, you will only spend time customizing the system specifically for your site;
- Brand. For some merchants, this can be an important aspect. With White Label, the customer will see that the payment system is your own.
- Security. As a rule, all payment systems designed for White Label implement a high standard of security for making payments. This point is especially important because payments are connected with a high risk of fraud, including chargebacks. Customer authentication is usually built in.
- Compliance with legal requirements. The legal aspect is no less important. The law of most jurisdictions impose a high standard of requirements, particularly within the framework of personal data security, AML/CTF regulation and other fields. These requirements are contained in various acts. A payment system that is provided ready for use will ensure that processes are developed and documents are prepared in accordance with this regulation.
What to pay attention to when using a White Label - payment system
Choosing a payment system that will provide you with services you should pay attention to:
- How much the system allows you to customize the site, that is, how you will be able to place your design when making payments;
- Will clients be redirected to the payment system's site or will they stay on the merchant's site to make payments?
- The answer to the second question determines who is responsible for data security. There are independent standards for payment card data security (PCI DSS). Therefore, if the payment system is responsible for security, it is worth making sure that the system meets the specified standard. If you are responsible, for example, if the customer is not redirected to the payment system's website, then the merchant's website must comply with the PCI DSS standards.
- What operations the payment system is able to perform, in particular, how payments are canceled and refunded, whether the payments are available to customers, etc.
Thus, it is necessary to consider White Label when using a payment system. Since the activities of the payment system involves many risks, primarily the risk of fraud and data security, it is worth to determine who bears these risks. Therefore, even a ready option of the payment system requires a thorough check of your processes for compliance with legal requirements. If you have any questions regarding the use of White Label payment system, contact the team of lawyers at A4 Law Firm.
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