Specificity: Connection PayPal autodonations to your CP or website Appropriate for chronicles: All chronicles Price: 115$ If you’re running an e-commerce site then you will undoubtedly be using a payment service provider (PSP) of some sort or another. The ability that a website provides you to be able to take your business anywhere in the world has made the provision of PSP services essential. PSPs accept payments electronically, usually by credit card or bank transfer, and manage transactions between buyers and sellers. One of their greatest attractions is that they offer risk free guarantees that payments information is protected against theft and/or fraud. Consumers trust them and so do sellers, and so, simply put, you need to utilize the services of one (or more) for your online store. How PSPs Work Spoiler The purpose of payment service providers is to help merchants accept payments made online. They offer e-commerce merchants a single interface that opens up to one or more online payment methods. They enable business to accept credit cards or other payments (direct debits, bank transfers, digital wallets etc.) There are three types of PSPs – distributors, collectors and aggregators. They all enable the ease of online payments, however where they differ is in payouts, fees and contracting. Let’s take a look at each a little more closely. Aggregators Spoiler Aggregating PSPs accept payments, collect the funds for and contract with individual payment methods. They differ from collectors in that they contract with the payment company on behalf of multiple merchants; the difference from distributors is that they also collect funds, negotiate the payment terms and settle the merchant’s bank account. Merchants who offer only a few payment methods, but prefer not to contract with financial institutions, banks, and other payment method companies favour aggregators. Stripe, Braintree Payments and Skrill all offer aggregating PSPs.