What is White Label Payment Gateway: Benefits, Drawbacks and How to Choose One

What is White Label Payment Gateway

The white label payment gateway has proven to be very helpful to businesses. As in today’s fast-paced and competitive market, having the appropriate payment gateway partner might be the determining factor in whether or not a company or brand is successful. The concept of integrating payments into a company’s software or mobile application is appealing to a lot of different enterprises. In this way, the management of online payments will be made simple and risk-free for both parties, and it will also contribute to the expansion of the customer base via national as well as worldwide market bases.

Let’s have a better understanding of what is a white label payment gateway, as well as its essential features and the benefits it provides to organizations.

What is a White Label Payment Gateway?

A white label payment gateway allows businesses to accept online payments under their branding and allows them to put their logo on the site. When you add your company’s logo and change the payment process with the help of a white label payment gateway, your brand will be easy to spot.

It is equipped with all of the characteristics of a conventional payment gateway, such as the capability to accept and process payments made through credit cards in a variety of currencies. A white label gateway takes things to the next level by enabling merchants to provide the same services to their clients.

Consider the case where you run your E-Commerce website builder. You can collect payments online for everyone who uses your platform to construct and host their business website with a standard payment gateway. You can, however, enable those customers to take credit card payments on the E-Commerce sites they construct if you employ a white label gateway. The best part is that you get a little percentage of every sale they make.

Benefits of a White Label Payment Gateway

The white label payment gateway enables a firm to offer a payment method for its products or services without devoting excessive time or resources to creating, testing, developing and releasing it.

Let’s examine some of the Primary Benefits of White Labelling a Payment Gateway.

1. Improved Brand Visibility:

This benefit is particularly noticeable in organizations that offer several supplementary third-party services or products. Think of an independent sales organization that resells merchant accounts from banks, card terminals, and E-Commerce platforms, for example. Using a white label payment gateway or branded payment gateway is an approach to improve brand recognition and presence across numerous channels.

2. Increased Customer Loyalty:

Adding a supplementary solution to existing items will increase customer loyalty for firms with pleased customers. This can aid in retaining them for an extended period. As more customers demand a single point of contact for numerous products and services, value addition under the same roof is becoming increasingly popular.

3. Technological Advantage:

A third-party payment gateway that focuses on the white label will have the competence to build cutting-edge technologies such as Apple Pay and Android Pay. With direct interfaces and accreditations across a variety of acquiring banks, enterprises may take advantage of conveniently accessible technology. The majority of resellers can place their brands on the quality list and offer them as their own.

4. Easy Rebranding and Redefinition:

A payment gateway must undergo frequent accreditation, upgrading, code testing, and system and process updates. Thus, a simple answer is to choose already-polished, ready-to-sell products to brand and advertise products without difficulty.

5. Saves Time and Efforts:

Setting up your payment gateway may seem like a fantastic idea, but unless the firm has done it successfully before, the owners are likely unaware of the amount of time, effort, and resources required to create an original product. In addition, the company must be aware that such a system requires continuous updates and monitoring.

6. Shared Ownership:

If a problem arises with the payment gateway, the firm will not bear sole liability. Instead of this, the payment gateway implements a repair or updates the service. Additionally, the firm can receive personalised support and submit input for service improvement. This allows the company to focus on routine operations and core offerings.

 

What is White Label Payment Gateway

 

Drawbacks of White Label Payment Gateway

1. Expensive:

If you don’t require white label services, the gateway’s cost may be excessively expensive without reason.

2. Control:

The majority of white label payment gateways are tough to modify to accommodate individual needs. Therefore, although you are technically in control, you might not have many options to choose from in terms of how the purchasing process seems and how it works.

3. Reputation at Stake:

By claiming the gateway as your own and exploiting it, you are placing your own identity and reputation in jeopardy. Any functioning difficulties or data breaches will reflect on your organisation and may potentially make you liable for penalties, lawsuits, and other types of punitive actions, you need to be extremely cautious about maintaining 100% PCI compliance and fighting fraud.

How to choose a White Label Payment Gateway

Certain functionalities are exclusive to white label gateways. For instance:

Ensure that the provider sells all of its gateway services directly to merchants, including customer service and fraud protection capabilities.

Make sure the company permits you to market their services under your name. They are not a true white label gateway if they offer their services to your clients but ask you to retain their name and branding.

Ensure that the service provider allows for customization. Ideally, you should be able to personalize your logo, checkout page, URL, colours, fonts, and any other embellishments so that they are consistent with your brand.

Ensure that the fundamental infrastructure is already in place, including its design, functioning, and security. Using a simple API or plug-in, you should be able to simply integrate the solution on behalf of your clients.

Additionally, there are some features that any payment gateway must-have, regardless of whether it is a white label or not.

The following features are required:

  • Reputation for reliability
  • Compliance with the complete PCI DSS standard and increased encryption
  • Multi-currency support
  • Assistance with recurring payments
  • Tools for fraud detection and chargeback reduction
  • Merchant service around-the-clock
  • Compliance with your shopping cart system

Conclusion

White Label Payment Gateway Solutions offer numerous advantages to businesses. You can maintain a high degree of competence and professionalism by outsourcing it. Ultimately, payments are not something worth taking a chance on; it is best to leave them to the professionals. A good white label payment gateway solution facilitates the maintenance of a high ROI, a solid brand reputation, the provision of the most creative and efficient payment solutions to your clients, and much more. Ensure you choose the appropriate business partner.

FAQs

1. What is White Label Payment Gateway?

A white label payment gateway is a payment system that enables a business owner or brand to accept client payments under its name while still utilizing third-party services.

2. Is white labelling permissible?

White labelling is a legal technique that permits the sale and rebranding of a product or service under a different company’s name. Businesses typically utilise a white label payment gateway to allow customers to make payments via a third-party gateway but under the business’s brand name.

3. Can I develop my payment processing system?

Yes, if you have your payment gateway, you can easily modify and add functionality based on the needs and requirements of your business. Many firms prefer to build their payment gateway, while others prefer to use a third-party solution.

4. Is White Labelling profitable?

For businesses that do not want to invest in developing their payment system, a white label payment gateway is beneficial.

5. How much does a White Label Payment Gateway cost?

The final cost is determined by the payment gateway provider you choose. You should contact your service provider to negotiate the ultimate pricing of our white label payment solution.

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