What is a payment agency? Explanation of service content, mechanism, and benefits

Being able to choose multiple payment methods is now commonplace for e-commerce site users. Since there are users who give up purchasing because there is no payment method they want, it can be said that EC site operators should increase payment options as much as possible.

However, there are many people who feel uneasy about which payment method should be introduced and whether management will be complicated by introducing multiple payment methods.

This is where a payment processing company comes in handy. In this article, we will explain in an easy-to-understand manner how the payment agency works, its benefits, and how to choose the payment agency that suits your company.

A payment agency is a company that acts as an intermediary between payment institutions such as credit card companies, financial institutions, and retailers.

When operating an EC site, providing multiple payment methods will lead to the creation of a wide range of users. Today, there are a wide variety of payment methods such as credit cards, QR codes, and barcodes, and there are various brands of credit cards. increase.

By going through a settlement agent company, you can reduce the burden of settlement operations because they will handle various contract procedures and sales management on your behalf .

Role of payment agency

The major role of payment agency companies is to support the introduction and operation of various payment methods so that EC site operators can use various payment methods.

Specific duties include the following:

• Acting on behalf of contract procedures between business operators and payment institutions
• Construction of payment environment and system for own EC site
• Settlement processing such as sales and refunds, and payment management agency

Originally, the EC site operator would have to directly interact with each payment institution, but the payment agency company will take care of it. Therefore, EC site operators can reduce the burden of procedures and concentrate on their original business.

Mechanism of payment agency service

The flow of payment when using a payment agency service is as follows.

1. A user (consumer) purchases a product using a credit card.
2. When an EC site operator (store) has a contract with a payment agency, credit card information is first sent to the payment agency, and then usage information is sent from the payment agency to the credit card company (payment agency).
3. The credit card company makes a replacement payment to the payment agency company, and the payment agency company makes a replacement payment to the EC site operator (store). At that time, the amount after deducting the fee will be paid.
4. The purchase price is paid from the user (consumer) to the credit card company.

Using a payment agency service not only increases options for users, but also benefits companies.

In this section, we will discuss the advantages of introducing the system and the advantages of operating it.

Advantages at time of introduction

First of all, I will explain three specific advantages of the payment agency service at the time of introduction.

Smooth contract process

The payment agency will handle all procedures and negotiations on behalf of the company, so the company can start using it without any hassle or effort.

Can be deployed with minimal effort

Since the point of contact is unified at the payment agency, there is no need to interact with multiple payment institutions, and companies can concentrate on their original work.

You can also request fee negotiation

By requesting a payment agency, you can compare the fees of each payment institution and receive a proposal on which payment institution to use.

You can also ask us to negotiate the fee. When an EC site operator negotiates fees with payment institutions, it is necessary to understand the credit card market and payment schemes in advance, so it is not easy to complete the negotiations on your own.

Benefits during operation

Next, I will explain two specific advantages of entrusting the operation to a payment agency.

Efficiency of office work is possible

By using the payment agency service, it is possible to save labor in clerical work such as payment management.

If you make a contract directly with a payment institution without using a payment agency, you will have to access the management site of each payment institution to check and manage the payment status, etc., which is very time-consuming.

By using a settlement agency, you can improve operational efficiency and compare and analyze sales for each settlement institution.

High security can be maintained

Payment management handles personal information such as customer credit card information, so security measures are essential. In payment agency services, we are working on advanced security measures to protect the security safety of user companies.

The settlement system of the settlement agent company automatically performs updates and data backups, so there is no need to maintain and manage the system in-house. Another big advantage is that you can always maintain a safe environment.

How can you choose the service that suits your company from among the many payment agency services?

Here are four points to consider when choosing a payment agency service.

Abundance of payment methods

The payment agency service handles all payment methods, including credit card payment, convenience store payment, carrier payment, and electronic money.

Since the types of payment methods handled by payment agencies differ, be sure to check in advance whether the payment method you want is handled by your company.

Payment fees and other costs

Payment agency service fees vary depending on the payment agency, so it is a good idea to obtain quotes from multiple companies and compare them.

When obtaining a quote, don’t just choose based on the low fee, but make a comprehensive judgment by comparing it with other costs.

Reliability and robust security

Payment agency services handle confidential and personal information, so it is necessary to carefully check security measures. In the unlikely event that personal information is leaked, the company’s social credibility may be lost and the company may fall into a financial crisis.

Acquisition of the following certifications is the criteria for judging the security system.

• Privacy Mark: A certification system granted to businesses that work to protect personal information
• ISMS certification (ISO27001): A certification system that proves the safety of information asset protection within a company
• PCI DSS: Security standard for safe handling of credit card information

The above is a proof that a certain security standard has been cleared, so please use it as a reference when choosing a payment agency.

In addition, the results of introductions with organizations and groups that are generally considered to have high examination standards, such as listed companies and government agencies, will be helpful.

Does your system meet the specifications?

When introducing a payment agency service, it is necessary to develop and build a system according to your company’s specifications.

In many cases, each company has its own development environment and system requirements. By contacting the payment agency, the person in charge will ask you about the requirements of the system you want to build, so inquire with your company’s system department in advance to organize the system requirements.

After the settlement agency is decided, we will go through the procedures such as application and examination to each settlement agency and account issuance through the settlement agency.

The general procedure is as follows.

1. Determination of payment agency service
2. Submission of application form
3. Submission of required documents
4. Examination and store registration for each payment institution
5. Conclusion of a contract with a payment agency
6. Issuing an account
7. Communication test of management system
8. EC site open
9. Operation start

The installation procedure differs depending on the payment agency, so please refer to each company’s website for details or contact them directly.

In this article, I explained how payment agency companies work, their specific benefits, and how to choose a payment agency company.

Now that cashless payment has become popular, all kinds of payment methods are appearing. If payment methods are limited, some users will give up on purchasing and look for products on other sites. It is no exaggeration to say that the fact that multiple payment methods are now available leads to the satisfaction of EC site users.

By using a settlement agent company, contract procedures with each settlement agency and daily sales management can be performed on your behalf, so you can provide options to EC site users without having to spend time on your own. . With the extra time, you can also consider initiatives that will further improve user satisfaction.

Since the characteristics and fees differ depending on the payment agency, please refer to the selection points introduced in this article and start by comparing the service contents of each company to decide which payment agency to enter into a contract with.