Internet Payment Service Provider (IPSP)

An IPSP is an entity that processes payments for merchants, usually of varying types through a centralized interface. This reduces the complexity for the merchant and means that a single integration is usually required, instead of multiple ones to the varying payment platforms.

Optional Aggregation

An IPSP may optionally 'aggregate' payments for merchants completely or partially. Normally, for credit card processing, each merchant has to obtain their own merchant processing account via an acquiring bank. In the case of an aggregating IPSP they may use the merchant account of the IPSP, and the IPSP will in turn pay the merchant from their account. Such accounts are popular for their simplicity in mainstream processing, and in high-risk processing they are often required because of the difficult terms that banks place on high-risk accounts.

Single Platforms vs. IPSP Platforms

There is, and has been, an awful lot of software produced to facilitate payment processing for any given merchant. In the early days this was software that controlled a dial-up modem to obtain authorizations, then with the Internet came online approvals. Such software hasn't changed much, it simply connects, talks to the network and records the result. This software is often tied to complex back-office and accounting software, making very powerful solutions to manage a particular company.

However, if you are a company that has to manage thousands of terminals, stores, or even merchant accounts, it's hard to find software that will manage this cleanly for you. It's almost impossible to account for these different accounts if you're an IPSP and need to track traffic, transactions, fees and payouts to your gateway clients. NES is a comprehensive platform dedicated to handling very large complex setups, and was created by engineers for an IPSP over a decade ago. In that time many things have changed, however this software is responsible for putting some major IPSP businesses in place in a very short time.

So, if you can imagine a scenario where you need to manage 1,000 clients, with 3,000 merchant accounts in multiple currencies in multiple countries in multiple languages. If you understand that 'manage' means tracking their traffic, their sales, credits and chargebacks, performing their customer service, negotiating with the bank. It means processing their fees, sending out their statements and handling their billing and risk. It means making real-time intelligent business decisions regarding routing credit card traffic. It means doing it all in real-time. When one merchant at a time isn't you, call us.