Tier 1 Quality Payment Aggregator Solutions
A Payment Aggregator is indeed a service provider that offers online credit card payment processing to various merchants using a shared Merchant Identification Number (MID). A payment aggregator works as an intermediary between merchant and card networks. Merchants get to accept various payment methods such as credit cards, debit cards, net banking, e-wallets, and other alternative payment methods.
Payment aggregators offer processing services to merchants without requiring them to set up an individual merchant account or sub-merchant account with any bank or PayFac. This makes the entire process easy and quick for merchants as they don’t have to go through the traditional approval process. Aggregated merchant accounts are quite beneficial for startups as well as merchants from low-risk industries that don’t get high chargebacks.
Features of Payment Aggregators:
Payment aggregators offer a quick signup process, and merchants can start accepting card transactions without waiting for days and weeks. Also, in many cases, they don’t have to sign long contracts. Payment aggregator signups include an online contract which is generally very concise and simple in comparison to any dedicated merchant account.
The merchant does not have to worry about handling the technical or regulatory requirements as these are handled by the aggregator. It helps merchants save money and resources.
Almost all payment aggregators offer a fixed fee structure. They charge a transaction fee, which is a fixed percentage of the transaction value. Some also charge a fixed amount as a gateway usage fee.
These accounts offer a very high approval rate. Almost every business gets approval, provided they are KYC compliant. Previous processing history and better than average credit history are also not needed for an aggregated merchant account.
FAQ Payment Aggregator
How much time do payment aggregators take to approve accounts?
Most payment aggregators approve accounts the same day. Merchants apply on the website and upload basic KYC documents. Within a few hours, the review team checks the application, and if approved, the merchant receives a notification email about account approval. Keep in mind that most aggregators immediately allow merchants to log in to the portal; however, until the account is approved, merchants only get access to a sandbox account.
What is the settlement cycle with aggregated merchant accounts?
The settlement cycle varies based on various factors. These days, payment processing companies offer quick T + 1 settlements in various nations, including the US, Canada, and the UK. However, for newer accounts, they may impose certain conditions that could delay payouts.
How does the integration work with payment aggregators?
Merchants get detailed API information on the aggregator’s website. For most common ecommerce platforms, they also offer ready-to-use plugins.
What are the risk factors associated with an aggregated merchant account?
The biggest risk factors associated with aggregated accounts include account closure, fund freezing, unnecessary questioning, slow support, and scalability challenges. Aggregators allow the account to be used by many merchants, each with different risk exposures. If the account receives any warning from the sponsor bank, the first thing aggregators do is start shutting down accounts they consider risky. They may immediately return the pending funds to customers and may also report the merchant to the MATCH list.
