A payment service provider (PSP) facilitates the collection of revenue by accepting electronic payments. Often also called a ‘payment gateway’, the payment service provider lets smaller businesses process credit card payments without a merchant account from a bank.
Using a payment gateway or PSP may eliminate the upfront costs of a merchant account, so many new businesses may prefer to start this way. As payment gateways usually take a percentage of each transaction, it may become increasingly expensive as your business grows.
If you’re looking for a payment service provider to facilitate your online selling, security is a top concern, so many new business owners seek out a provider who offers fraud protection, PCI compliance and the ability to process different currencies.
How international selling affects your choice of PSP
Preferred payment methods may differ substantially in foreign markets and may include bank transfer or debit and credit card payments, so look for a provider who knows the difference between Alipay and BPAY. Always check the cross-border fees of your payments provider as these can be substantial. If you’re not happy with PayPal taking nearly 4% of your cross border earnings, sign up with the OFX online seller solution, so you can minimize those costs by up to 75%.*
How does OFX help?
With an OFX online seller account, you can establish local receiving accounts in USD, CAD, EUR, AUD, GBP and HKD, so you don’t have to pay 4% to marketplaces like Amazon when you bring your money home.
Plus, you can pay your overseas suppliers at a fraction of the cost of using your bank to transfer the funds. Most banks will charge up to 5% in foreign exchange margins in addition to international transaction fees. We don’t. Our margins are under 1.5% when you register for an online seller account with OFX.
It works like this: if you earn $200,000 in overseas sales, using OFX transfer your money will help you keep an extra $5,000 in your pocket. Not too shabby.
Sign up with OFX today and keep your profits in tact while using our simple 24/7 online platform. If your bank has been treating you like a number, make the switch to OFX.
*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.