White-label payment gateways: What they are and what benefits they offer
A payment gateway is a technology that enables businesses to accept and process online payments. It serves as a bridge between a customer’s payment method—such as credit cards, digital wallets, or bank transfers—and the business’s merchant account, ensuring secure and fast fund transfers.
White-label payment gateways: What they are and what benefits they offer
A payment gateway is a technology that enables businesses to accept and process online payments. It serves as a bridge between a customer’s payment method—such as credit cards, digital wallets, or bank transfers—and the business’s merchant account, ensuring secure and fast fund transfers.
Initiation
The transaction begins when a customer chooses to make a purchase and inputs their payment details on the business’s website or app.
Encryption
After the customer submits their payment details, the web browser encrypts the data, typically using SSL encryption, for secure transmission. This encrypted information is then sent to the business’s server and, for online transactions, forwarded to the payment gateway.
Routing
The payment gateway transmits the transaction details to the appropriate payment processor, which then forwards it to the card issuer or the relevant card network.
Authorisation
The customer’s bank receives the authorization request, verifies the availability of funds, checks for potential fraudulent activity, and sends a response back to the payment processor. This response will either be an approval (if funds are available and all details are correct) or a decline (if there are insufficient funds, the card has expired, etc.).
Order fulfilment
The payment gateway forwards the authorization to the business, allowing them to fulfill the customer’s order. If the authorization is declined, the customer is notified of the unsuccessful transaction.
Settlement
The card issuer transfers the funds to the business’s account during a process known as “settlement”, and the transaction is complete.
What is white label payment gateway?
A white-label payment gateway is a ready-made payment solution that businesses can customize and rebrand as their own. This model enables companies to provide secure, tailored payment solutions without the need to build the technology from scratch, saving time, money, and technical effort
What type of Businesses use white label payment gateway?
White-label payment gateways are a practical solution for businesses of all sizes and industries looking to streamline payment processes and strengthen their brand presence. However, they are particularly attractive to specific business types, including
Software-as-a-Service (SaaS) providers
SaaS providers often incorporate payment gateways into their platforms to handle recurring transactions. A white-label payment gateway allows them to offer a seamless, branded payment experience to their users
Banks and financial institutions
These businesses may opt for a white-label payment gateway to provide their customers with a secure, reliable, and branded online payment solution, without the need to develop the technology internally.