This means that as a webshop owner, you will be free from having to establish these connections yourself when you enter into an agreement with a payment service provider. The payment service provider ensures that you get a more transparent, secure and easy way to run your webshop.
How a payment service provider, also called PSP, works
A payment service provider will most often operate through the payment provider's
own payment gateway. The customer on your webshop enters the information necessary to complete the transaction in a payment window, which functions as a secure gateway.
The payment service provider then establishes contact with the acquirer, who carries out the further processing of the transaction. Through the payment gateway, the customer's card details are processed and approved, provided everything is as it should be.
When the acquirer has processed the transaction and charged the money, the gateway makes all the necessary information available so that the specified amount can be charged from the customer's account and transferred to yours. Then you receive the money for your customer's order.
Some payment service providers function as both payment service providers and acquirers, while other payment service providers only act as a payment gateway.
In cases where payment service providers do not act as acquirers themselves, you as a webshop owner must make a separate agreement with an acquirer, either through the payment service provider, which will most often have advantageous agreements with one or more acquirers, or on your own.
At Freepay, we have strong partnerships with Shift4, Elavon, Clearhaus, Trust Payments and Nets, which are some of the largest acquirers in the Danish payment market. If you want Freepay as your payment gateway, we can help you get a good acquirer agreement with one of them.
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