Payment Aggregator: Is It Right for Your Business?

Saturday, March 12th, 2022

A payment aggregator also called a merchant aggregator, enables business owners to process payment transactions without opening a merchant account with a bank or association. This article is about payment aggregators and whether they can be the go-for option for you.

Payment Aggregator

Payment aggregators or merchant aggregators are service providers that allow eCommerce merchants to process their payment transactions. More specifically, you can accept credit card and bank transfers without the need to open a merchant account with a bank or card association.

Here, it’s important to look at the difference between a payment gateway and a merchant aggregator. The former lets you deal in a specific payment option, while the latter lets you have multiple options for payment. 

Recent research shows that by the year 2040, 95% of all global purchases are anticipated to be completed through eCommerce. So, you should focus on using the right payment-processing services for your eCommerce business to provide the best for your customers. 

Is a Merchant Aggregator Right for Your Business?

Payment aggregators act as a third-party service enabling merchants to manage and process their online transactions. A merchant aggregator is preferable for small businesses with low transaction volumes. This service can best help small businesses trying to get started as soon as possible.  

A merchant aggregator comes with both advantages and disadvantages. Let’s look at them.

Pros include:

• Simple application process
• Quick approval
• Accept payments right off the bat
• Flexible contracts
• Predictable pricing thanks to fixed card processing fees

Cons include:

• Potential for slow payments
• Higher transactions lead to higher charges
• Lower volume limits

If you want to handle merchant services on your own, it is best to opt for a merchant account. To find the most suitable merchant services for your business, work with an expert in payments like BestPaymentProviders.co.uk. 

Best Payment Providers UK is committed to offering the most secure, cheapest, and the most advanced payment services, including a payment aggregator, by honestly reviewing the terms, complaints, and integration of providers. 

What You Need to Know About a Merchant Aggregator 

A merchant aggregator is a third-party payment service allowing business owners to accept debit- or credit-card eCommerce payments without the need to go through a bank. Take into account the pros and cons associated with this type of service to figure out whether you need it.