How Long does it work: another important factor to keep in mind is whether the channel is available throughout the day or for a certain window. If it runs 24 hours, you need to recruit technical support worldwide to keep a 24-hour check on the payment Gateway.

Modes of Payment: to put it simply, the channel for processing the payments will soon reach a global platform. The consumers will pay from different parts of the world. Therefore they need convenience to pay through their most accessible mode of payment. Credit Card Processing is one of the modes of payment that you need to include, but there are more, and they are as crucial as cards.

Even if you are planning to start your own payment gateway business, it is vital that you think about the above pointers as they will justify the needs and demands of the merchants. Whereas when one buys a white label payment gateway for their business, it can be easily incorporated through different plug-ins or are already present as a feature for the channel of payment processing.

How can I start a payment gateway business?

Initializing with a White Label Payment Gateway has to be the easiest idea. In other. words, to start your own payment gateway business from scratch will take you. through a rigorous and costly process. Thus, White-Label Payment Gateway exists. for supporting your new business idea.

Basics of starting a payment gateway business

1. Partnering with banks
2. PCI Compliance
3. Creating a sales department
4. Technical maintenance cost
5. Creating a long term business plan
6. Net worth
7. Marketing department; etc.

The initial setup cost and needs to start your own payment gateway business is not the most time and cost-efficient idea. However, every business was once a start-up. We at gatewayeast have dedicated solutions that will kick start your business. Let's see how:

How can Gatewayeast help your business idea?

Our solutions are exclusively tailored for your business plan. With White-Label Payment Gateway solutions, you will be able to personalize every aspect of the payment gateway according to your business. Your business name, logo, and other watermarks can be included in it seamlessly.

It gives an edge to your business where you don't have to manage the technical team for maintenance and other services. Getting a complete in-house team for a business is not only a costly but time-consuming process. Thus, outsourcing the solution from expert solutions will establish a brand image for your business.

Starting your own payment gateway business can be easy with light support from us. If you want to start your own payment gateway to use it for your own site simply, why do you need to establish an independent team of experts for the payment gateway? With our dedicated and prime solutions, you can start with marketing and sales without worrying about other charges and consumer support. Getting a Third-Party to do the business for you is the best way to start your own business initially. With Time everything builds up to the net worth.

Where do I start?

The very first thought you get into your mind is that you need a developer or technology service provider after having thought of starting your own payment gateway business. After all, it is a tech-savvy solution to accept payments online. Well, this is a myth. The first requirement of starting your payment gateway is connecting with either an acquiring bank or a payment processor.

Why do I need a payment processor?

You will need a payment processor to connect if you are willing to serve a payment gateway service. A payment processor, also recognized as a merchant service, transmits the transaction through the card network. Occasionally an acquiring bank can also function as the card network.

The processor you choose to work with will provide you with technical information to integrate your gateway with your system. Depending on the type of payment you want to be able to accept, you may need to cooperate and integrate with multiple Processors.

Why do I require an acquiring bank?

A payment processor and an acquiring bank will be the first need of any merchant willing to start their own payment gateway business. Acquiring bank provides a merchant account that helps to accept online payments. An acquiring bank or financial institution facilitates merchants to process credit card and debit card payments.

An acquiring bank does not function the same as a commercial bank that provides checking and saving accounts. Make it clear that the financial institution you are willing to partner with can set you up with a merchant account.

However, it takes a few seconds to complete payment, but many players are involved in the payment process.

1. Customer initiates an online purchase.
2. The merchant transmits the payment information to the payment gateway.
3. The payment gateway encrypts the payment information and transmits it to the payment processor.
4. The payment processor authenticates the payment information and transmits it to the card processing network.
5. The card processing network transmits the information to the issuing bank.
6. Depending on the number of funds in the customer's account, approved or declined messages are transmitted back to the payment network.
7. If the payment is approved, funds are transmitted to the merchant's account at their acquiring bank.

What technical specifications will I need?

The payment processor you opt for will provide the specifications required to integrate your payment gateway with theirs and the entire payment network. If you are looking to accept various payment methods, you may need to obtain additional specifications from other acquirers or processors.

These technical specifications will update you about the technology required to start your own payment gateway.

What if I want to offer services in multiple geographic areas?

In that case, you need to get in contact with a processor operating in all geographical regions. In simple terms, we can say you need to partner with processors that work in various places or collaboration with multiple processors.

How much will it cost to build a payment gateway?

A vicinity estimate to create a payment gateway minimum viable product will be around USD 300K or may get higher based on the functionality you wish to have into your payment gateway. This is the least price to get at least the ability to accept credit card and debit card payments.

How long will it require to build a payment gateway?

When you start from scratch, it takes years to build a payment gateway. If you are searching for a speedier solution to license, a white label product can be a perfect solution, that can help you set up in months. Most white label products can be customized as per your business requirements.

On the other hand, it may take months or years for processors to decide to integrate with your payment gateway, making it suitable for market use.

To start your own payment gateway from scratch, we roughly estimate up to 6 months. This time period may fluctuate based on the specification of your demand.

Will I save money in the long term if I build my own gateway?

Off-the-shelf payment gateway solutions usually include a high sign-up cost and fees involved with each transaction made, which can eat up a massive part of your profit

over time. With your own payment gateway, you can save these long-term fees and sign-up costs.

Plus, interchange and settlement costs can only be diminished with direct integration with card network providers.

Additionally, owning a payment gateway and operating it also comes with the extra cost to pay for servers and gateway products maintenance.

Don't forget about security

Getting into a partnership with a high-end processor and getting technical specifications for integration are just the secondary concerns. Security is always the first concern that each merchant looks for in a payment gateway. A secure connection is a crucial aspect that boosts customer's confidence.

A secure payment gateway with advanced fraud detection tools helps diminish fraudulent transactions and avoid chargeback and other barriers resulting from fraudulent purchases.

What is PCI DSS?

The PCI-DSS is a set of security standards that ensures all firms that accept, process, store, or transmit card information maintain a safe environment.

The PCI SSC was established on September 7, 2006, to manage the continuous development of the Payment Card Industry (PCI) security standards, focusing on enhancing the security of payment accounts throughout the transaction process. PCI DSS is managed and administered by PCI SSC, an independent organization created by major payment card brands (Visa, MasterCard, American Express, and JCB). It should be noted that payment brands and acquirers are responsible for enforcing compliance, not PCI recommendations.

What PCI DSS compliance level will I need?

Based on the Visa transactions volume over 12 months period, a merchant will fall under one of four below-mentioned levels of PCI compliance.

Merchant levels as defined by Visa:

Level 1 - Any merchant — despite acceptance channel — processing over 6M Visa transactions per year. Any merchant that Visa determines should meet the Level 1 merchant requirements to lessen the risk to the Visa system at its sole discretion.

Level 2 - Any merchant — despite acceptance channel — processing 1M to 6M Visa transactions per year.

Level 3 - Any merchant processing 20,000 to 1M Visa transactions per year.

Level 4 - Any merchant processing less than 20,000 Visa transactions per year, and other merchants — despite acceptance channel — processing up to 1M Visa transactions per year.

EMV

EMV stands for EuroPay, MasterCard, and Visa is the global standard for chip card technology-based credit card and debit card payments. Chip card payments hold dozens of data exchanged between the card, POS terminal, and the bank or processor's host.

EMV nowhere replaces PCI compliance; EMV protects against fraudulent use of cards in-store transactions. A merchant willing to accept card-present payments will need to have backing EMV to handle transactions.

EMV 3-D Secure

EMV Three-Domain Secure is a messaging protocol that allows consumers to authenticate themselves while initiating card-not-present (CNP) e-commerce and m-commerce purchases. The protocol provides an extra security layer that assists prevent unauthorized CNP payments, protecting the merchant from fraud.

Tokenization

Tokenization is the process of safeguarding sensitive information by replacing it with a token. It is also used to prevent credit card fraud. Payee's primary account number gets replaced with the token in the credit card tokenization. The token is then passed without exposing the actual bank details to the various networks required to process the payment. All the sensitive data is held in a secure token vault.

P2PE

Peer-to-peer encryption allows firms to establish safe and secure communication between devices and protects transmitted sensitive data from theft on the same network. P2PE is frequently utilized as a compliance solution for PCI DSS.

What are the alternatives to build your own payment gateway?

If you seek a rapid solution to set up your payment gateway business, the White Label Payment Gateway solution is the right choice. With just a few modifications and alterations, it allows you to offer your payment gateway service and let your clients onboard their merchants. By reducing the number of intermediaries between your business and your acquirer, it minimizes the processing cost.

It is obvious to get bothered about the service level you expect from White Label Payment Gateway. Well, there are options available. An entity offering white label service allows you to alter and customize the payment gateway as you wish to. Everything and every part of the payment gateway will be customized as per your

Requirement

If you have researched building your own payment gateway, you must be aware of the cost and time it takes. White label solution is a cost-effective solution for you without any extra effort needed from your end.

You get all the service you expect from your own payment gateway with an easy and hassle-free installation process and guaranteed low cost in the industry.

Conclusion

We believe now that you have a clear perspective of what it takes to start your own payment gateway, so are you still willing in building your own gateway? Get in contact with our expert team right away.

Gatewayeast is a White Label solution provider globally with an extraordinary team of experts who works delicately for your success. We have built a ready-to-use framework to support our clients looking to start their own payment gateway business. Our build solution helps customer payment processors, banks, ISO's, ISV's, and resellers to get into the payment gateway industry. Our clients get complete freedom to customize our payment gateway as per their business needs. They can put their branding, logo, and other changes they want to make.

Gatewayeast helps their client to save their time and money in building own payment gateway. Our feature-rich, ready-to-use framework is ready for the clients to onboard their merchants with just a few modifications and alterations.

To know more, you can connect with us at hi@gatewayeast.com.