A payment aggregator usually refers to an online service provider with deep roots in the financial world. These companies can sometimes be referred to as gateway providers, payment facilitators, or service providers.
Payment aggregators are like go-betweens who enable the transfer of big-ticket payments. They offer this service by creating an avenue for many different platforms and businesses to work together over the Internet.
What is a Payment Aggregator?
A payment aggregator is a service that allows you to accept and manage payments from different payment processors with just one integration. Payment aggregators play a significant role in creating the bridge between merchant and processing firms by giving the freedom of customization.
Aggregators help merchants receive and process credit and debit card transactions. But these companies are not issuing banks. Instead, they are middlemen between merchants accepting payments by credit card or debit card and the banks that issue credit cards.
Payment Aggregator: How Does the Service Work?
A payment aggregator accepts transactions from a merchant’s website or mobile app.
- First, the customer provides credit card information to the merchant through an online checkout process.
- The merchant submits this information to an appropriate payment aggregator via an encrypted connection and other information about the transaction.
- The payment aggregator then sends this information to the card-issuing bank for authorization.
- If approved, the banks provide funds to the merchant’s account for each transaction.
If you don’t have a merchant account, you can use a payment aggregator. This is often recommended for small businesses that are just starting.
The Pros of Working with an Aggregator
A payment aggregator will give you peace of mind because they encrypt all data before transmitting any customer information over the Internet or wireless networks
Aggregators offer convenience for customers and business owners. You won’t have to worry about spending hours on the phone booking appointments or trying to send invoices via email.
3. Multiple payment providers.
You aren’t stuck with just one provider when you use a payment aggregator. This gives you access to a wide range of tools and services, allowing you to choose the best fit for your company and your customers.
4. Payment processing for all methods.
A single payment aggregator can process credit cards and other online payments, such as PayPal and electronic checks.
5. Lower processing fees.
Payment aggregators may give you better rates than individual marketplaces due to volume or other factors.
Author Bio:- Payment industry guru Taylor Cole is a passionate payments expert who understands how to get the best payment aggregator. He also writes non-fiction on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.