Every startup business that wants to accept electronic payments needs to address two conceptual aspects. The business aspect concerns getting underwritten as a merchant by an acquiring bank. The technical aspect concerns finding a payment technology, which would allow the business to accept electronic payments.
An acquiring bank (or acquirer) is a large entity, directly integrated with card networks (Visa/MC/Amex). It cannot perform background checks for every business applying for a merchant account. So, it often delegates the task of merchant underwriting and onboarding to some payment facilitator (or PayFac). A PayFac allows a startup merchant to handle both business and technical aspects of electronic payment acceptance.
Major PayFacs, usually, offer standard merchant services “packages” and feature sets. These standard packages do not cost much to both PayFacs and their sub-merchants. For instance, if your monthly processing volume amounts to $20,000, your PayFac’s revenues amount to $300–400. As you can imagine, for such a reward, the PayFac can only offer you the basic feature set.
Flexible Payment Technology for a Growing Business
As your processing volume grows and your needs become more sophisticated, you are striving to customize the payment technology you are using and get more control over the process. And that is when your troubles begin.
Most of the large PayFacs start with a standardized offering but, usually, have a customized solution in stock for the most “lucrative” customers. So, a major provider might be reluctant to negotiate a customizable solution with you, because “you are not good enough” or the solution is not easily adjustable.
On the bright side, some companies choose to follow the customizable merchant services paradigm. They offer easily upgradable solutions right from the start. UniPay Gateway technology, the flagship product of United Thinkers, is a vivid example of such a solution. It can be initially licensed as a cloud or hosted payment gateway solution and, when necessary, taken in-house as an open-source-code software product and customized according to your new needs and realities.
Contact our team of payment specialists to learn more about robust UniPay Gateway technology and see, how it can improve your business model.