What are the steps involved in starting a payment gateway business?
Payments
Asked by Question Bot10/Mar/20121 answer
1 Answer
F
Faisal Khan
Answered 10/Mar/2012
Assuming you want to get started in the US.
To start a payment gateway, you would need to be an MSP / ISO of a bank.
MSP: Member Service Provider means the financial institution (i.e. bank) through which you will be validating the registration and transactions of the card holder (i.e. VISA, Mastercard, Amex, Discover, etc.)
An MSP is also the party who is making access to acquiring services available through that membership
ISO: Independent Sales Organization would be a sales agent (i.e. you), as registered with the card associations (i.e. VISA, Mastercard, Amex, Discover, etc.), sponsored by an MSP (i.e. a financial institution) that is allowed to secure point of sale acquiring (be it online or offline)
If you talk to banks like Wells-Fargo, Chase or Bank of America to name a few, you will get all the necessary financial requirements, corporate requirements and technical requirements enabling you to become a payment gateway.
Your technology background will come in handy in making a layer (portal) on top of the APIs and interconnects that the bank you work with provides.
References:
To start a payment gateway, you would need to be an MSP / ISO of a bank.
MSP: Member Service Provider means the financial institution (i.e. bank) through which you will be validating the registration and transactions of the card holder (i.e. VISA, Mastercard, Amex, Discover, etc.)
An MSP is also the party who is making access to acquiring services available through that membership
ISO: Independent Sales Organization would be a sales agent (i.e. you), as registered with the card associations (i.e. VISA, Mastercard, Amex, Discover, etc.), sponsored by an MSP (i.e. a financial institution) that is allowed to secure point of sale acquiring (be it online or offline)
If you talk to banks like Wells-Fargo, Chase or Bank of America to name a few, you will get all the necessary financial requirements, corporate requirements and technical requirements enabling you to become a payment gateway.
Your technology background will come in handy in making a layer (portal) on top of the APIs and interconnects that the bank you work with provides.
References:
- Merchant Account: http://en.wikipedia.org/wiki/Mer...
- MasterCard MSP Rules Manual (PDF) - gives you a good example of what the rule sets are all about. See http://www.mastercard.com/za/wce...
- Chase ISO Program - http://iso.chasepaymentech.com/
- Wells Fargo Merchant Services (couldn't find their ISO link) https://www.wellsfargo.com/biz/m...