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What is White-Label Credit Card Processing?

In the fast-paced business world, the drive to launch an innovative and profitable payment processing company is a common aspiration. If you’re wondering how to embark on such a journey with minimal investment and in a short period of time, the solution lies in white-label credit card processing.

What is White-Label Credit Card Processing?

The following article will uncover what white-label credit card processing is. Additionally, the article explains how it works, highlights its benefits, and provides a step-by-step guide on how to launch your business with a white-label payment processing solution.

What is white-label credit card processing?

Let’s break down the concept of white-label credit card processing by first exploring the nature of payment processing itself.

Payment processing is essentially the behind-the-scenes work of handling payments done by Payment Service Providers (PSPs) or other Fintechs via their payment system. Such a system acts like the conductor of a symphony, ensuring all transactions are processed successfully. It also ensures payments’ security and contributes to their efficiency.

Now, white-label credit card processing is a payment solution that allows entrepreneurs to enter the payment processing arena without creating a payment system from the ground up. This model provides them with the opportunity to rebrand and market existing payment solutions as their own in a short amount of time for a much lower price.

If previously white-label processing systems were mostly specialized in credit card payments due to their dominance, they have evolved to encompass diverse payment options and technologies. This expansion includes alternative payment methods, cryptocurrency payments, instant payments, and many more. Thus, white-label credit card processing solutions now extend beyond traditional credit card transactions to cater to customers’ modern payment preferences.

How does white-label payment processing work?

The mechanism behind white-label credit card processing is elegantly simple. It is a pre-built software developed by a skilled team of Fintech experts ready for branding under a client’s business identity.

As a business owner, you partner with an established software vendor who handles intricate technicalities and system branding. The vendor is responsible for software development and maintenance and adjusting the system to your requirements.

Additionally, the vendor oversees compliance with the required security standards for clients to operate legally and securely. Meanwhile, you save time and effort on crucial business operations and focus on expanding your brand and serving your customers.

The benefits of white-label payment processing

Some of the compelling benefits that come with adopting a white-label payment processing solution include:

Cost-efficiency

In contrast to building a system from scratch, white-label payment systems offer a cost-effective alternative. The setup fees typically kick off at a few thousand dollars, along with transaction-based payments and extra charges for required enhancements. This approach allows you to cut development costs and redirect your financial resources toward other crucial aspects of your business. Som you are paying only for subscriptions without being responsible for software maintenance.

Swift market entry

As the system comes pre-built, all that needs to be done before entering into live mode is its setup and branding according to the client’s guidelines. Typically, it is a matter of weeks. In this way, white-label software allows clients to start generating revenue from the first month of operation, eliminating prolonged development cycles.

Experienced payment team

When you partner with a white-label provider, you often gain customer support from experts inside the provider’s team. They handle the technical aspects, regulatory compliance, ongoing system maintenance, and training for your team. Their expert knowledge and skills can contribute to the system’s smooth operation. Plus, it will reduce the burden on your own resources.

Technological advancements

White-label credit card processing systems leverage the latest technologies and innovations in the payment processing industry. So, by adopting a white-label processing system, businesses can stay at the forefront of technological developments, offering their customers a modern and efficient payment experience.

Branding and customization

Crafted for future rebranding in line with the customer’s brand identity, white-label payment systems are suitable for reselling and marketing as your own. Plus, despite being an established solution, they offer a high degree of customization. It allows you to tailor the solution to align with your brand’s unique needs.

Risk mitigation

Given the nature of handling customer payment data, white-label processing systems are mandated to adhere to strict data security standards, mitigating risks. Furthermore, as they bear legal responsibility for maintaining data security, these systems provide robust anti-fraud features.

Who needs white-label credit card processing?

Anyone aiming to provide payment processing services without the challenges of building and maintaining a payment system may find white-label credit card processing a good fit. Yet, it is particularly beneficial for:

  • Entrepreneurs and startups

White label credit card processing is a game-changer for entrepreneurs seeking to enter the digital payments industry without the substantial investment and time required to develop software from scratch. By opting for a ready-to-use solution, they gain immediate access to the market. Additionally, they can explore the payment processing sector without risking all their resources. Moreover, they can kickstart revenue generation within the first month of operation, sidestepping the usual six-month waiting period associated with Minimum Viable Product development.

  • Established payment service providers

There are several ways to leverage a white-label payment processing system for established PSPs. If they find their own payment solution to be outdated, they can transition to a cutting-edge white-label payment system that aligns with their current business requirements.

In case their current system proves satisfactory but lacks the scalability to handle increased transaction loads, they can allocate clients between their own system and a white-label solution. Due to this, they will effectively manage the current workload.

If they currently operate on a third-party payment system that falls short in costs, features, or integrations, they retain the freedom to shift to another white-label software vendor that better meets their criteria.

  • Financial service providers

Companies in the financial services sector, banking, and other Fintech entities seeking to expand their service offerings without independently developing and maintaining an in-house payment processing solution can opt for a white-label payment processing system. For instance, if a bank integrates a pre-built white-label credit card processing system into its existing infrastructure, it will provide its users with not only standard banking services, including savings accounts, loans, and basic payment solutions, but also transaction processing services and advanced payment technologies, generating additional revenue with minimal effort.

  • E-commerce platforms

Online businesses that want to have their own payment system instead of relying on a payment service provider can easily integrate white-label payment software. This approach offers greater autonomy over the payment flow, enabling businesses to tailor payment technologies, enhance payment conversion rates, and increase revenue. Furthermore, the integration provides a satisfactory checkout experience through customization and payment page branding. It ensures a consistent and branded appearance aligned with the merchant’s identity.

  • Service resellers

Another category that will benefit from white label payment processing is service resellers interested in offering processing services under their own brand without needing intricate technical know-how. Since the white-label provider handles the technical complexities, resellers can focus on their core competencies, such as sales, marketing, and customer relationships, while delivering a reliable and customizable payment processing solution.

How to launch your business with a white-label payment processing company

Launching your business with a white-label credit card processing company involves several steps. Here’s a step-by-step guide:

Step 1: Market research

To select a white-label payment processing company that best suits your business requirements, you should conduct extensive research. Examine potential competitors’ track records, evaluate their features and integrations, explore customization options, and understand their pricing structure.

Step 2: Partnership and agreement

Once you’ve decided on the payment provider, you can move forward to the partnership and agreement phase. During this phase, meticulously examine the provider’s terms and agreements. Engage in negotiations to align the terms with your business objectives, covering discussions on pricing, customization options, and any specific features you may need.

Step 3: Integration and setup

Collaborate closely with the vendor to establish the system. This process includes technical setup and system customization according to your specific requirements. During this stage, you can select preferred payment methods and providers and request custom integrations and feature developments as necessary. Once all configurations are in place, your team will undergo system training, enabling you to onboard your clients seamlessly.

Step 4: Launch and marketing

At this stage, you are ready to go live. To attract more customers, develop a marketing strategy highlighting the benefits, features, and security aspects of your new payment system.

Step 5: Monitoring and optimization

Once the system runs smoothly, keep a close eye on transaction metrics, including payment conversion, decline rates, chargeback ratio, and the prevalence of various payment methods. This monitoring enables you to fine-tune and optimize the technologies, ensuring the system operates at its maximum potential.

Akurateco’s innovative white-label payment solution

The key to success in the white-label payment processing business hinges on selecting the right software vendor. Akurateco stands out among the most reputable providers, offering cutting-edge software with the latest technologies and integrations with over 330 banks and payment methods globally.

With reasonable pricing and swift time-to-market, Akurateco also accommodates custom feature and integration development upon request. What sets the company apart from competitors is its experienced payment team, which provides professional support and in-depth knowledge of diverse payment issues for customers.

Conclusion

In conclusion, white-label credit card processing emerges as a strategic solution for businesses seeking efficient entry into the payment processing arena, paving the way for success in the dynamic landscape of financial transactions. By partnering with reputable providers like Akurateco, companies can leverage cutting-edge technology, a global network of integrations, and a seasoned payment team while enjoying swift time-to-market and customizable features.