What does PSP – Distributor stand for?


Choosing a Payment Services Provider is an important decision for every online business. In order to have payments from your website processed by the credit cards you will have to apply to an approved Payment Service Provider.

In a previous material, we already mentioned that PSPs can be divided into three types: Distributors, collectors and aggregators.

In this article, you will discover the functionality of distributors.

In short, the distributor is a payment service provider that approves multiple online payment methods via a single interface.

It takes care of processing the data by using proven payment layout. Usually the distributor correspondences only between the merchant’s website and one or more payment method options.

It is important to know that distributors do not collect the funds related to different payment methods. Merchants pay directly to the financial institution that processes the payments.

An online business is virtually impossible to conduct without the assistance of a payment service provider. Business who use the services of a distributor, sign a contract and negotiate the price.

If payments are not your core business and if you are looking for advice on your specific requirements, do not hesitate to get in touch!