Reseller's Guide to Choosing a White Label Payment Gateway Provider
Choosing a white label payment gateway reseller program means comparing providers on security, branding, integration, pricing, and support. Payment resellers get the criteria to evaluate white-label payment gateway providers and shortlist the right partner.
Resellers, companies, and individuals are keen to provide seamless payment solutions without the headache of developing proprietary software. But there are so many white-label payment gateway solutions out there; how can you evaluate which one is best for you and your business?
Key Features to Evaluate in a Payment Gateway
Choosing a white-label payment gateway provider is not just about the brand; it means evaluating the technology and features that will support your business's growth and operational efficiency.
Security and Compliance
Security is paramount in payment processing solutions. Thus, the white-label payment gateway provider must adhere to strict security and compliance standards to safeguard sensitive cardholder data and minimize fraud opportunities, like PCI DSS Compliance.
PCI DSS (Payment Card Industry Data Security Standard): a collection of security standards aimed at ensuring that any entity that accepts, transmits, processes, or stores credit card information has a secure environment in which to operate.
In addition to PCI DSS compliance, the gateway should also possess tools for fraud prevention.
Fraudulent charges cause companies to lose millions and harm their reputations, no matter how long the customer has worked with them. Thus, helpful fraud prevention tools are real-time transaction monitoring, AI and machine learning, and other analytics and fraud scoring efforts.
For resellers serving European merchants, the gateway also needs 3D Secure 2 support.
3D Secure 2: the card schemes' authentication protocol used to meet Strong Customer Authentication (SCA) under PSD2, and without it many card-not-present payments from EEA cardholders are declined.
Tokenization: adds another layer: card numbers are replaced with tokens, so merchants can offer one-click and recurring payments without storing raw card data.
Customization and Branding
The greater the ability to customize a white-label payment gateway, the greater the business's ability to maintain branding consistency during the payment experience. A true white-label solution renders the gateway proprietary, like the business is processing payment, down to the logos, branding, and visual appeal.
This creates brand loyalty while simultaneously developing consumer trust, as consumers believe it's the business processing their payment.
Beyond front-end white labelling, a reliable white-label payment gateway should also provide back-end customization: changing the appearance of back-end interfaces and dashboards needed for back-end processing to create a more personalized brand experience.
For a payment gateway reseller, the back office matters as much as the checkout. A white-label back office gives you a single access point to all sub-merchant accounts, so you can onboard merchants, update account statuses and permissions, set limits, and review turnover under your own brand.
Integration Capabilities
Ease of integration is another factor to consider when selecting a white-label payment gateway. The solution should boast an abundance of APIs and SDKs that are simple to integrate and compatible with existing systems and platforms.
APIs: Application Programming Interfaces that allow one software program to talk to another to transfer information and functionality.
SDKs: Software Development Kits given to developers to create new applications on top of the payment gateway.
In addition to APIs and SDKs, plug-and-play represents another simple, easy integration option. These are systems already created, and all that's needed for integration are modules with popular e-commerce sites and pay pages, requiring little in the way of coding/development efforts.
Check which checkout options the provider supports, because your merchants will have different technical capacity:
A hosted payment page suits merchants with no development team.
An iFrame keeps the payment form embedded in the merchant's own site.
Direct API integration gives full control to merchants with in-house developers.
Payment Methods and Currency Support
A white label payment gateway that is flexible offers all necessary payment options. I'm talking credit and debit cards, digital wallets (PayPal, Apple Pay, Google Pay), direct transfers, etc.
The more the merrier, preferably with multicurrency options, better conversion rates because if they see something they can use to pay, they're more likely to go through with the sale.
Multi-currency processing capabilities are crucial for those with international operations or extensive customers.
Account-to-account payments are worth checking too. Built on open banking, they move funds directly between bank accounts, which lowers processing costs for European merchant portfolios.
Furthermore, it must be a flexible gateway that can manage changing customer demands, a fluctuating marketplace, and future advancements in payment technology.
Expert tip
When choosing a payment gateway, focus on reliability and adaptability rather than the sheer number of payment methods offered. While many providers emphasize quantity, only about 20% of these methods are actively used. Instead, look for a gateway built on a robust, high-performing architecture that ensures long-term reliability and uptime.
Business Factors Payment Resellers Should Consider When Choosing a Provider
Beyond the technical features, several business factors play a pivotal role in selecting the right white-label payment gateway provider.
Pricing Structure
A clear and transparent pricing structure is essential for maintaining profitability and offering competitive services to your merchants. Key considerations include:
Clear Information on Fees: Ensure that the provider offers detailed information on transaction fees, setup costs, and any additional charges. This transparency helps you budget and price your services accurately.
Healthy Margins: The pricing should allow you to maintain healthy margins while offering value to your merchants. This balance is crucial for sustaining your business model and ensuring that your merchants remain satisfied with your services.
Revenue Model: Clarify how you earn. Some white label payment gateway reseller programs pay a referral commission on merchant volume, while others let you set your own merchant pricing on top of the provider's wholesale rates and keep the margin.
Customer Support
Reliable customer support is vital for addressing technical issues and inquiries promptly. Consider the following:
Reliable Support: Look for a provider that offers reliable support to assist with technical issues and inquiries. This support should be available through various channels, such as phone, email, and live chat.
Personalized Assistance: Having a point of contact who understands your business and can provide personalized assistance is invaluable. This ensures that any issues are resolved quickly and efficiently, minimizing downtime and maintaining merchant satisfaction.
Scalability
As your business expands, it is crucial that your white-label payment gateway provider can handle increased transaction volumes and offer access to new functionalities. Consider the following:
Handling Increased Transaction Volumes: The provider should be able to handle increased transaction volumes as your business expands. This includes having a robust infrastructure that can scale up without compromising performance.
Access to New Functionalities: Access to new functionalities and services is essential to stay competitive in the market. This includes features such as advanced fraud prevention tools, new payment methods, and integrations with emerging technologies.
Selecting a white label payment gateway provider means comparing different options based on their unique selling propositions and how they align with your business needs.
Unique Selling Propositions
Each white-label payment gateway provider differentiates itself through specific features and benefits.
Key factors to consider include:
Customization and Integration: The degree to which a provider allows customization and seamless integration with existing e-commerce platforms.
Security Measures: The robustness of security protocols, including data encryption and fraud detection capabilities.
Pricing Models: The structure of transaction fees and any additional costs for services such as customer support and maintenance.
Multicurrency Support: The ability to process payments in various currencies is essential for businesses operating internationally.
Customer Support: The availability and responsiveness of customer support services.
Prioritizing Features Based on Business Needs
To choose the right provider, businesses must prioritize features according to their specific requirements:
Assess Integration Needs: Consider the compatibility of the payment gateway with your current e-commerce platform and the ease of integration.
Evaluate Security: Look for providers with robust security measures, including end-to-end encryption and fraud detection tools.
Consider Transaction Fees: Compare the pricing models of different providers to find the most cost-effective option for your business.
Check for Multicurrency Support: Ensure the provider supports multiple currencies if your business operates internationally.
Review Customer Support: Opt for a provider with reliable and responsive customer support to handle any payment-related issues.
Case Study: What Makes DECTA Gateway Different
DECTA's gateway as a third party in the payment processing space is unique against the competition due to stability, uptime, and architecture technology.
Compared to other providers, DECTA differentiates itself with the following factors.
99.99% Uptime: DECTA has a 99.99% uptime, which essentially means that merchants are able to process payments at any given time with no downtime. This is crucial to ensure customer experience and avoid losing sales due to inability.
Future-Proof Architecture: DECTA is future-proof because of its scalable and flexible architecture. Businesses need not worry about system upgrades or migrations as DECTA will support increased transaction volumes and new payment functionalities down the line.
Tokenization: With DECTA's tokenization functionality, sensitive payment information is exchanged for a unique token which protects against data breaches to a fuller extent while still allowing easy, repeat payments without storing credit card information.
Payment Orchestration: With DECTA's payment orchestration solution, you receive an all-in-one, centralized interface to control different payment service providers (PSPs), acquirers, and payment methods. This simplifies the payment process for the business and the end user while facilitating better payment routing and reducing incidences of cart abandonment.
Launch your own branded payment gateway
Resell DECTA's White Label Payment Gateway under your logo, with PCI DSS Level 1 infrastructure, 3D Secure 2, and a full sub-merchant back office.
Assess the benefits and drawbacks of each reseller program, as this comparison helps ensure you're selecting the best one. As there are so many options available, knowing these few specifics will help narrow down to the most reputable, secure, most efficient, and easiest payment processing for your customer.
Reseller Program Models
Payment gateway reseller programs typically follow one of three models:
Referral model: you introduce merchants to the provider and earn a referral commission, while the provider contracts and supports the merchants.
Independent Sales Organization (ISO) model: you sell the provider's processing services through your own sales effort and own the merchant relationship.
Full white label model: typically chosen by Payment Service Providers (PSPs), you run the gateway entirely under your brand, set your own merchant pricing, and manage settlement and reconciliation through the provider's back office.
Contracting merchants directly and holding their funds usually requires your own licence, such as an Electronic Money Institution (EMI) or Payment Institution (PI) licence, so the model you choose also decides your compliance obligations.
Reliability and Uptime
Reliability and uptime for the vendor are critical. A proven solution that has been around with good customer feedback, stable operation reliability, and at least 99.99% uptime is critical to ensure that your clients will not be frustrated, as any payment service that wastes time and money will ultimately cost them.
Reseller solutions are known for strong infrastructure (compared to high levels of integrations), the latter meaning that other integrations have nothing to do with your company.
Key considerations include:
Consistent Performance: Evaluate the provider's track record for uptime and reliability. Guaranteed uptime and redundant systems ensure uninterrupted service, preserving customer trust.
Platform Stability: Assess the provider's infrastructure to ensure it can handle high volumes of transactions without compromising performance.
Merchant Acceptance Policies
With merchant acceptance capabilities, providers can underwrite any kind of merchant. Whether a transaction is considered high-risk, without jeopardizing security in the process, solutions meet the needs of any vertical.
Key considerations include:
Accommodating Policies: Look for providers that offer flexible acceptance policies to cater to various merchant types.
High-Risk Transaction Handling: Evaluate the provider's strategies for managing high-risk transactions, ensuring security and compliance with industry standards.
Acquirer Connections: A gateway connected to several acquiring banks gives you more options to place merchants, including those in higher-risk verticals, than a gateway tied to a single acquirer.
Merchant Onboarding and KYC: Understand who performs KYC and AML checks on new merchants. Even with a white-labeled gateway, onboarding checks must meet regulatory standards, and automated onboarding workflows let you sign merchants faster.
Chargeback and Dispute Management: Check what tools the provider offers to track and contest chargebacks. Chargebacks carry fees and, if ratios climb, card scheme monitoring programs and penalties, so weak dispute tooling eats directly into reseller margins.
Technical Support and Integration Assistance
Providers should offer comprehensive help during the onboarding process, as well as continued technical support to address any future challenges.
Key considerations include:
Initial Setup and Integration: Assess the provider's support during the initial setup and integration process. Look for providers that offer easy-to-implement APIs and developer-friendly documentation.
Continued Technical Support: Evaluate the provider's ongoing technical support capabilities, including response times and availability to address issues or queries promptly.
Practical Tips for Resellers
Here are some practical tips for resellers to help you succeed:
Checklist for Comparing Providers and Reseller Programs
Assess Provider Industry Experience: When vetting potential providers, be sure to assess their industry experience. Choosing a provider who has been in the credit card processing game for a long time will help guarantee that they understand the pain points of the industry and offer industry-specific solutions.
Evaluate Branding Opportunities: Ensure the merchant complies with the branding and customization levels your company needs. The final white-label solution is that you get the payment gateway in your logo, colours, and optional messages. This means payment is a branded experience consistent with your company at all other times.
Validate Compatibility with Security Standards: Ensure the merchant is compatible with the industry's security standards related to PCI DSS. Beyond PCI compliance, excellent security measures (encryption, tokenization, fraud detection) are necessary to ensure sensitive customer data is not at risk.
Evaluate Supported Payment Methods: sometimes less is more; a handful of trustworthy, meaningful methods are better than a ridiculous supplement of unsupported methods. The payment processor should accept debit/credit cards, digital wallets, ACH/bank transfers, alternative payments, etc.
Evaluate Fees: pricing should be clear and equitable. Consider the fees related to the payment processor. Are there transaction fees per transaction, fees for setting up the payment processor, and unexpected fees? Make sure that the fee schedule accommodates your transaction volume and budgetary constraints.
Evaluate Integration Resources: Ensure they possess all necessary integration assistance and developer resources. The simpler it is to integrate with your current platform or website, the less business downtime. Furthermore, you want a vendor that provides ongoing technical support and upgrades.
Common Mistakes to Avoid
Overlooking Quality for Quantity
If a payment gateway provider has a lot of merchants but many are unreliable or worse, that's the problem. Quality over quantity: make sure every payment option offered will work for you and your customers.
Not Considering Merchant & Technical Support
You also need to consider whether your payment gateway provider will have enough support for you and your merchants. Payment gateways will need technical support and upkeep, and you'll want your provider around to help fix problems when they occur (and they will).
Ignoring Regulatory Changes
Find a provider who knows evolving compliance and regulations so you never fall out of compliance with your business operations. Errors are irrevocable.
Reevaluate your requirements
Constantly reevaluate your merchant services situation to improve and cut costs where necessary. Keep in mind that your provider may still be the best option for you down the line, but reevaluating for improvements gives you the opportunity to legally implement your reevaluation per compliant standards.
Summary and Conclusion
Ultimately, comparing white-label payment gateway providers comes down to features that meet your needs relative to processors, business considerations, and reseller program considerations. The more aware you are of the value propositions of each payment processor relative to your priorities, the better you will be matched with a partner who guarantees seamless integration and expansion.
Talk to a DECTA payments expert
Get advice on the right white label gateway setup for your reseller business, from integration to merchant onboarding.
