1. Payment gateway and merchant acquiring license: A payment gateway is a technology that facilitates online transactions by processing credit card payments. A merchant acquiring license is a permit issued to a financial institution to process electronic payments on behalf of a business.
2. Regulations: Payment gateways and merchant acquiring licenses are subject to government regulations that ensure the safety and security of electronic payments. These regulations vary by country and region, so it’s important to research the specific laws that apply to your business.
3. Risks of using an unlicensed merchant acquirer providing payment gateway services :When a payment gateway does not have a merchant acquiring license, it may be operating illegally or engaging in risky behavior. This could put your business and your customers’ financial information at risk.
4. Alternatives: If you’re concerned about the safety of your money when using a payment gateway without a merchant acquiring license, consider using an alternative payment method or working with a licensed payment processor.
5. Due diligence: When choosing a payment gateway, it’s important to conduct due diligence to ensure the safety and security of your business and your customers’ financial information. This includes researching the company’s reputation, reading customer reviews, and verifying that the company is properly licensed and regulated.
6. Merchant Acquirer: A financial institution that processes payment transactions on behalf of a merchant. They help merchants to accept different payment methods and ensure that the payment is authorized and settled correctly.
7. Payment Processor: A third-party company that helps merchants to process payment transactions from various payment methods (e.g., credit cards, debit cards, e-wallets). Payment processors work with acquirers to facilitate payment transactions.
8. Payment Gateway: A payment gateway is not allowed to accept money on behalf of merchants, but it helps to secure the payment transaction process by encrypting sensitive data and routing payment information between the merchant, payment processor, and acquirer.
9. Merchant Account: A type of bank account that enables merchants to accept payments from their customers. Merchants must set up a merchant account with a merchant acquirer to process payment transactions.
10. Chargeback: A chargeback occurs when a customer disputes a payment transaction and requests a refund. The payment processor and acquirer handle chargeback disputes, and merchants may be responsible for paying chargeback fees or penalties.
11. Information on merchant acquiring licensing issued by Bank Negara Malaysia : non bank merchant acquirers are known as Payment System Operators (PSOs) and they are authorized to provide payment services in Malaysia. Examples of non-bank PSOs in Malaysia include GHL Systems Berhad, Soft Space Sdn Bhd, and iPay88 Sdn Bhd, Souqa Fintech Sdn Bhd ( PayHalal) , 2C2P System (Malaysia) Sdn. Bhd. ,Razer Merchant Services Sdn. Bhd. (formerly known as MOLPay Sdn. Bhd.), Revenue Monster Sdn. Bhd, Stripe Payments Malaysia Sdn. Bhd. It is best to consult Bank Negara Malaysia’s latest list of licensed payment system operators for accurate and up-to-date information.