What’s So Hard About Building Your Own Payment Gateway?

by
in Blog
on Monday, 01 December 2014 23:40

Online commerce is powered and facilitated by payment gateways, and most companies rely on third-parties to provide their payment gateway software. But why not build your own? As it turns out, there are many reasons for choosing a white label payment gateway or similar turnkey gateway solution over reinventing the wheel.

If you have your own team of programmers, you may be tempted to tackle building your own payment gateway. It may not even seem like a particularly daunting project. But gateways are based on more than information technology. They’re based on relationships, legalities and complexities that may not be immediately apparent.

More Than An IT Project

Setting up your own payment gateway is a complex financial, legal and political project more than it is an information technology job. There are significant risks and costs involved in setting up a gateway that many companies considering this daunting undertaking don’t fully appreciate. Things can spiral out of control quickly.

Perhaps most important is the relationship between the company and the many banks that must be involved. These relationship aren’t something that can be developed overnight. Banks may be slow to bother with new integrations when so many existing gateways are available. The wait is often years rather than weeks or months for banks to take notice of new projects.

The government is involved too.

In the United States, the financial industry is highly regulated and carefully controlled, so it can be complex and time-consuming to meet governance regulations. The single process of Payment Card Industry Data Security Standard compliance -- or PCI compliance -- can be complex enough to derail some ill-considered in-house gateway projects. The standards ensure card data protection and reduce the likelihood of security violations, but they can be difficult to meet.

In addition, global relationships are essential in many industries. Doing business outside the borders of the United States creates an additional layer of complexities. There aren’t just additional banks involved, but additional languages, tax regulations and laws to understand.

The White Label Gateway Approach

It makes sense to consider licensing a white label payment gateway before starting the process of building an in-house payment gateway. It can often take years to build a gateway from scratch, but a white label product can be up and running in a matter of months. The cost is low, and customization is available to ensure that you get exactly what you want.

In many cases, financial institutions prefer this approach as well. Since relationships are already in place between the gateway provider and the banks, your company can benefit from these established relationships rather than having to build your own connections.

White label payment gateways can offer you such a significant cost savings because the costs involved in developing the solution are spread among many customers. And since those other customers also demand reliability, you can be sure the system has dependability and robustness built into it.

We’re Here For You

Turning to established payment gateways allows companies to maintain their own branding but avoid dealing directly with payment processing, a big win for companies with resources that are already overstretched. Choosing a managed gateway service can allow your business to focus on what it does best while another company provides your payment gateway solution -- what it does best.

PayVisors offers an intelligent and sensible alternative to building your payment gateway that you can implement quickly. Let our experts explain how our product works to meet your needs better than anything you could create yourself.


So what’s so hard about building your own payment gateway? Even if you understand that it’s more than just an information technology project, it involved a lot of time-consuming relationship development and duplication of effort. And this inefficiency is hard to accept for many company leaders who understand that there’s a customizable solution ready and waiting for them.

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