Why Is Choosing a Reliable Payment Service Provider Important?
If you’ve ever wondered how to choose the best payment service provider, then please keep reading. This guide will help you sort out the good ones and save a lot of money.
Nowadays, there are plenty of payment service providers claiming to be award-winning, most trusted, and so on. But the truth is that the majority of them are not awarded, trusted, or even good at international money transfers. This is because they lack basic correspondent banking relations, have bad technology, or are undeveloped.
Having a well-banked and technology-based payment service provider will improve your business operations and save a great deal of money.
What Is a Good Payment Service Provider? [3 Tips]
There are multiple ways to check the legitimacy and quality of any PSP available. Even more, there are many technical ways to do that. But it is not going to necessarily help the reader perform such technical analysis by
So I have decided to look at this from a different angle. Here are a few quick tricks that will help everyone have a better understanding.
1. Management team First and foremost, it is important to check who is managing the company. You can easily look up the employees on LinkedIn. Moreover, you will be able to see the past experiences of the people who run the company. Also the number of all employees and how often they are changing.
The key people should have relevant banking and payments experience along with a perfect reputation. Furthermore, because today's PSPs are highly technical, having a diverse developer team is advantageous.It also signals that you won’t have issues with the payment platform in the future.
In a similar vein, you will be able to see where those people are located. This is useful when employees are based in one country but the EMI license is obtained in another. That should automatically raise some questions. For example, you want to open an account with a UK-licensed payment service provider, but all employees are based in Russia. Wouldn’t that look strange?
2. Media check-up. Media is a good tool to check for negative news on the particular PSP. Maybe this company had received a fine from the regulator for money laundering? Or maybe they were involved in some scandals? The negative light on company practices is a red flag.
It is extremely important to work with reputable and transparent banking providers.
3. Payment routes. PSPs use other banks to route payments for their clients. So in many cases, your recipient will see the name of the bank that routed the payment. Now imagine the payment service provider is using a Russian or Latvian bank to route their payments. Your payment can be rejected by the recipient's bank.
If your funds are going through high-risk countries, it isn’t great. So you should ask your payment provider who they bank with. And more importantly, where they keep your money. In other words, safeguard.
A truly good payment service provider will partner with top-tier banks such as Barclays or Citi. On top of that, being a wholesale partner of a top-tier bank enables PSP to access a vast correspondent banking network. Such a partnership would also enable extremely good pricing capability, which is the key to competitiveness.
What Is the Best Payment Service Provider?
Having in mind all that was said, there are several good banking providers out there. Because each client is different, it all comes down to a unique business case.Epico Finance assists business owners in locating the best digital banks for their specific business operations and model.Reach out to us to get a list of banking platforms that are best for your business.
We can also help you to:
· Get EU or GB named IBANs for all payments and foreign exchange.
· Introduce you to mass-payments by integrating via API or uploading an Excel spreadsheet.
· Access to effective currency hedges
· Exchange of currencies using reasonable and competitive pricing
· A cost-effective solution for low-value international payments
· Implement payment control and audit trails.
· Get your best relationship managers ready to help find the best solution and answer your questions.
Please do not hesitate to contact us for more information or account opening under better terms here.
Conclusion
There are numerous payment service providers on the market, but not all of them are of high quality. It is important to distinguish quality from tricky marketing campaigns. Use the three tips above and you will be able to distinguish quality payment firms.