What is a payment service provider (PSP)? A plain-English guide for businesses
By SendPay Business · · 2 min read
A payment service provider, or PSP, is a firm that lets a business take payments from customers, by card, bank transfer, wallet or link, without setting up each of those connections itself. Most small businesses that take card payments online use one.
What a PSP does
- Gives you a way to take payments: a checkout, a payment link, an invoice or a card machine.
- Passes each payment to the card networks or banks, and checks it for fraud.
- Collects the money and pays it out to your bank account, minus its fees.
PSP, gateway, acquirer: what's the difference?
A gateway is the technology that carries a payment from your checkout. An acquirer is the licensed firm that processes card payments for a business. A PSP usually bundles both, and often more, into one account so you don't need separate contracts.
What it costs
Most PSPs charge a percentage of each payment, often with a small fixed fee, and some add monthly fees or charges for refunds and disputes. Compare the total you keep, not just the headline rate.
How to choose
- Check it supports the countries, currencies and payment methods your customers use.
- Look at how quickly it pays out, and whether it can hold back money.
- Read the fees for disputes, refunds and currency conversion, not just card payments.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What will card fees cost me?
The card fee calculator shows what you keep from each payment after the percentage and fixed fee.
Card fee calculator →Do I need a card machine?
Not always. Payment links and invoices let you get paid by card without one.
Card machine alternatives →Can I become a payments company myself?
Yes. SendPay builds branded payment platforms, powered by licensed partners. It is free to design and preview, and you only pay when you publish.
Start a payments company →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.