PSP
PSP stands for payment service provider. A PSP connects merchants with payment methods such as cards, direct debit, wallets, or buy-now-pay-later services and handles technical authorisation and processing steps. Depending on the provider, services can include risk checks, tokenisation, recurring payments, currency conversion, reconciliation, and payouts.
Selection should consider more than transaction fees. Supported markets and methods, payout times, refunds, chargebacks, availability, APIs, support, contract terms, and data flows also matter. A PSP reduces certain technical and security tasks but does not remove the merchant’s legal, accounting, and organisational responsibilities.
- Connects payment methods technically
- Processes authorisation, transactions, and payouts
- Compare fees and contract terms
- Review chargebacks, refunds, and data flows
- Merchant retains its own responsibilities
Frequently asked questions
A payment service provider connects merchants technically with payment methods and processes transactions.
Important factors include payment methods, markets, fees, payouts, chargebacks, APIs, availability, support, and contract terms.
