What Is A PSP Merchant Account?
A PSP merchant account is known as a payment service provider. This allows you to accept digital payment processing services for your business. You don’t need a dedicated merchant account if you opt for a PSP merchant account. When a new business merchant applies for a PSP, these payment service providers create a sub-account for it. This merchant account aggregates all the transactions for multiple merchants under one merchant account. PSP is also referred to as a third-party aggregator.
How To Apply For A PSP Merchant Account?
Getting a PSP merchant account is very easy. There will be an abridged application procedure. After getting an approval for the PSP merchant account. You can quickly start accepting payments under the sub-account provided. That’s why the PSP merchant account is best suitable for small scale businesses who want an aggregated account to begin receiving credit card payments promptly. Some of the consequences you must know about PSP merchant account are:
- Easy and straightforward verification procedure while applying for a PSP merchant account.
- Merchants who surpass the limits and trigger the “red light”. Their accounts get terminated.
- If a merchant starts conducting high-risk account business transactions over a PSP merchant account. Their account could be terminated without any prior warning.
- If some of the other sub-account merchants under the same merchant account starts violating the rules, Then everyone has to pay the price for it.
What Are The Documents Required For Third Party Aggregator?
Some of the major documents that are needed to be submitted along with the PSP merchant account application form are:
- A Certificate of Incorporation is required
- A Certificate of Incumbency
- Company Details like name and licence
- Void Check
- Bank account statements up to the last six months.
- Processing statements up to last six months, If applicable
- Director’s KYC Documents
After successfully submitting all the documents. Your PSP merchant account will be approved.
Pricing And Charges Of A Payment Aggregator?
You can expect a flat-rate cost model for the PSP merchant account solution. You will always be charged at the same cost. It doesn’t matter what card type you are doing each and every transaction. Some PSP merchant account providers charge very low monthly fees and some charge nothing at all. That’s why it is always a better option for a new and small scale business who wants to save a lot in terms of credit card processing for small business transactions.
What About The Chargeback Limits on PSP Merchant Account?
All your payments are processed under a single PSP merchant account. That’s why the chargeback limits are also shared among every sub-merchants under the best online payment aggregator account. If one of the sub-merchant gets higher chargeback, Then the mutual MID of the account receives red triggered to launch a compliance purge. So if a sub-merchant default the chargeback alerts limit, then this account will be suspended without any prior warning.
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