Where funds be keeping by PSP through e-wallet transactions?

[Dreamwalker]

Hello friends,

There are plenty of PSPs who help transaction processing for credit/debit cards.
As far as I know every fund proceesed by credit card processor should be keeping in a merchant account before settlements with a merchant. Sometimes a merchant account can be belonged a merchant with unique one but also the merchant can use aggregated accounts with the processor.

However, some of them just say that a functional service of payment processing by one payment gateway, which may also have not only credit card processing but also alternative payment methods like online banking, e-wallets, etc.
My question is,
No matter which method clients may use, does the psp keep the funds in a designed merchant account?
If not, I want to know how funds (not credit/debit cards) be stored before settlement to merchants.

Any sages here to give me some lights?

 

[James2774]

Are you asking where funds are kept when customers use payment methods such as Interac, Giropay, etc?
If so, yes the PSP keeps them in your account and pays to your bank as per your withdrawl scedule.
What is it youre looking to get done?

 

[JohnLocke]

No matter which method clients may use, does the psp keep the funds in a designed merchant account?

You will have to ask them how they keep your rolling reserve, some have custodian accounts while others keep them on simple bank accounts with no protection.

 

[Dreamwalker]

If so, yes the PSP keeps them in your account and pays to your bank as per your withdrawl scedule.

Because I am working to setup a right payment strategy what PSP should be proper and what payment methods should I keep that for my business, online trading.

Whatever payment methods clients use, if the methods are processing by a PSP, would all the funds being processed into a merchant account (of mine) then be paid (=settled) by my schedule?
Online banking payments like Giropay, Interac, etc do not have a wallet system the payment institution provides clients so that they might hold the funds in the merchant account temporarily then settle to my bank account.

For instance, Skrill has a e-wallet platform. Every clients of Skrill should have Skrill wallet.
If a merchant uses Skrill payment through a PSP and if a client pays with Skrill money through the PSP gateway, in this case also would the funds be deposited into the merchant account? (Because I guess the funds be deposited into the merchant Skrill wallet processed by the PSP).
This is what I am looking to get.

 

[James2774]

Because I am working to setup a right payment strategy what PSP should be proper and what payment methods should I keep that for my business, online trading.

Whatever payment methods clients use, if the methods are processing by a PSP, would all the funds being processed into a merchant account (of mine) then be paid (=settled) by my schedule?
Online banking payments like Giropay, Interac, etc do not have a wallet system the payment institution provides clients so that they might hold the funds in the merchant account temporarily then settle to my bank account.

For instance, Skrill has a e-wallet platform. Every clients of Skrill should have Skrill wallet.
If a merchant uses Skrill payment through a PSP and if a client pays with Skrill money through the PSP gateway, in this case also would the funds be deposited into the merchant account? (Because I guess the funds be deposited into the merchant Skrill wallet processed by the PSP).
This is what I am looking to get.

I think I get it.
So for example, you want to be able to accept giropay without having a giropay account.
Yes if the merchant account accepts those payments you would not be required to set them up yourself.
Just as merchant accounts might accept Google or Apple Pay and yet you won’t need an account. They would be deposited into the merchant account and then laid to your bank.

 

[Dreamwalker]

I think I get it.
So for example, you want to be able to accept giropay without having a giropay account.
Yes if the merchant account accepts those payments you would not be required to set them up yourself.
Just as merchant accounts might accept Google or Apple Pay and yet you won’t need an account. They would be deposited into the merchant account and then laid to your bank.

Oh I see.
I have never known that it actually depends on those payments might accept be deposited into the merchant account.
I get it now.
So probably, if Skrill does not accept being processed into the merchant account so I should use a Skrill Wallet (Business) to be laid.

Thank you @James2774

 

[James2774]

Oh I see.
I have never known that it actually depends on those payments might accept be deposited into the merchant account.
I get it now.
So probably, if Skrill does not accept being processed into the merchant account so I should use a Skrill Wallet (Business) to be laid.

Thank you @James2774

Correct.
Your merchant account must specifically accept Skrill otherwise you’d need your own Skrill wallet separately.

many reason you specifically want Skrill?

 

[Dreamwalker]

many reason you specifically want Skrill?

Since my business is sorted in a high risk industry, yes, Skrill is one of answers I may take as an option.

 

[Dreamwalker]

@James2774

Let's say there is an onlince commerce (merchant) in Thailand. They open a business account by a Thailand bank.

The merchant sells products in Philippines, but the merchant does not have a local bank account there.
If the merchant gets a solution by a PSP who provides online banking payment for Philippines and clients get paid.

In that case, where the funds go first?
Like you said earlier, the funds go to a merchant account (by the PSP) then be also laid the bank account (Thailand) of the merchant?

The point is that, be possible to be settled without local bank accounts.

 

[James2774]

@James2774

Let's say there is an onlince commerce (merchant) in Thailand. They open a business account by a Thailand bank.

The merchant sells products in Philippines, but the merchant does not have a local bank account there.
If the merchant gets a solution by a PSP who provides online banking payment for Philippines and clients get paid.

In that case, where the funds go first?
Like you said earlier, the funds go to a merchant account (by the PSP) then be also laid the bank account (Thailand) of the merchant?

The point is that, be possible to be settled without local bank accounts.

If your Thailand based merchant account is accepting bank transfer payment form Philippines, you almost certainly will not need a Philippine bank. The PSP will accept the bank transfer for you, then deposit it into your Thai bank. Just as you might be set up to receive Google Pay through the merchant account, without having a Google Pay account yourself. I for example accept Giropay, though I do not have Giropay nor a German or EU bank. My account handles that and pays me out.
What is it you sell or are looking for a solution for? Looking for alternative payments for high risk is a good idea, much better to avoid chargebacks/cards and Visa/MC watching.

 

[Dreamwalker]

If your Thailand based merchant account is accepting bank transfer payment form Philippines, you almost certainly will not need a Philippine bank. The PSP will accept the bank transfer for you, then deposit it into your Thai bank. Just as you might be set up to receive Google Pay through the merchant account, without having a Google Pay account yourself. I for example accept Giropay, though I do not have Giropay nor a German or EU bank. My account handles that and pays me out.
What is it you sell or are looking for a solution for? Looking for alternative payments for high risk is a good idea, much better to avoid chargebacks/cards and Visa/MC watching.

Thank you for the answers.
I get it. It literally helps me a lot.

My business is an online gambling.
I agree with your thought that to accept alternative payments for my business, of coourse, but look for some proper PSPs might help me to integrate their solutions at once.

 

[uplana]

cryptocurrency is a possible solution, but you can't avoid credit cards if you want to avoid losing out on profits.

There are payment processors specialized in gambling around, they will require that you have a license.