Hi Dhruv, they are not related but they serve the merchant in different ways. The ISO resells the merchant account on behalf of the acquirer to the merchant but that are not involved in the processing, this is why it is easy to disintermediate them. The Payment gateway on the other hand, takes on a higher responsibility often involved in underwriting the merchant. They are also involved in the online processing , another reason they need to be PCIDSS certified and so on. Most ISO grow on to be a payment gateway of a PayFac. I hope this helps.
Hi Alex - Thanks for this helpful diagram. I am unclear as to the relationship between ISO/MSPs and Payment Gateways? I.e. if I go to a cafe and put my card into a square terminal, I thought the square terminal was the gateway - if not, as per your diagram, what is the "payment gateway" square uses? Also, in the diagram, there is no indicated "line" relationship between ISO and gateway, whereas in the description below it suggests ISOs and processors work together to open merchant accounts. I would appreciate any clarification here if possible. Many thanks!
Hi Dhruv, they are not related but they serve the merchant in different ways. The ISO resells the merchant account on behalf of the acquirer to the merchant but that are not involved in the processing, this is why it is easy to disintermediate them. The Payment gateway on the other hand, takes on a higher responsibility often involved in underwriting the merchant. They are also involved in the online processing , another reason they need to be PCIDSS certified and so on. Most ISO grow on to be a payment gateway of a PayFac. I hope this helps.
Hi Dhruv, they are not related but they serve the merchant in different ways. The ISO resells the merchant account on behalf of the acquirer to the merchant but that are not involved in the processing, this is why it is easy to disintermediate them. The Payment gateway on the other hand, takes on a higher responsibility often involved in underwriting the merchant. They are also involved in the online processing , another reason they need to be PCIDSS certified and so on. Most ISO grow on to be a payment gateway of a PayFac. I hope this helps.
hey Alex, could you please do one system design on BNPL?
Hi Alex - Thanks for this helpful diagram. I am unclear as to the relationship between ISO/MSPs and Payment Gateways? I.e. if I go to a cafe and put my card into a square terminal, I thought the square terminal was the gateway - if not, as per your diagram, what is the "payment gateway" square uses? Also, in the diagram, there is no indicated "line" relationship between ISO and gateway, whereas in the description below it suggests ISOs and processors work together to open merchant accounts. I would appreciate any clarification here if possible. Many thanks!
Hi Dhruv, they are not related but they serve the merchant in different ways. The ISO resells the merchant account on behalf of the acquirer to the merchant but that are not involved in the processing, this is why it is easy to disintermediate them. The Payment gateway on the other hand, takes on a higher responsibility often involved in underwriting the merchant. They are also involved in the online processing , another reason they need to be PCIDSS certified and so on. Most ISO grow on to be a payment gateway of a PayFac. I hope this helps.
In the payments ecosystem you have just put there couple of examples of acquirers and psps, right? otherwise I am missing worldline, for example....