Payment service provider (PSP): the complete guide to choosing the right one
A payment service provider (PSP) is the company that lets an online business accept payments: card payments, SEPA transfers, digital wallets, cryptocurrencies. In practice, the PSP authorises each transaction, collects your customers' funds, screens out fraud, then settles the money to your business bank account. Without one, you simply cannot take Visa or Mastercard payments on the internet.
This guide covers what a PSP does, how it differs from an online payment gateway, an acquirer and a merchant account, the 7 criteria for choosing yours, and your options when your industry is classed as high-risk and Stripe or PayPal turn you down.
What exactly is a PSP?
PSP stands for payment service provider: a regulated institution that gives merchants the technical and financial infrastructure needed to accept remote payments.
In Europe, the activity is governed by the PSD2 directive: a PSP operates under a payment institution licence (issued in France by the ACPR) or as the agent of a licensed institution, with the obligation to hold merchants' funds in dedicated accounts, segregated from its own treasury.
Historically, accepting card payments online meant assembling three contracts: a technical gateway to carry the data, an acquiring agreement with a bank that belongs to the Visa and Mastercard networks, and a merchant account to receive the funds. A modern online PSP bundles those building blocks into a single offer: one contract, one integration, one report. That is what made Stripe successful in mainstream sectors, and it is exactly what Bridge Pay applies to the 28 sectors mainstream providers refuse.
In practice there are three families of providers:
- Mainstream PSPs with instant onboardingStripe, PayPal, SumUp: perfect for standard businesses but closed to sensitive sectors.
- Legacy acquirersTheir banking solutions are usually reserved for large volumes and friction-free files.
- Specialist PSPs like Bridge PayThey take on risky sectors with human review and tailored acquiring agreements.
The right choice depends less on the technology (now comparable from one player to the next) than on the provider's risk policy.
The 4 functions of a payment service provider
Accept every payment method
Visa and Mastercard, SEPA transfers, Apple Pay and Google Pay and, depending on the provider, cryptocurrencies. Every relevant payment method added to your checkout mechanically lifts conversion.
Secure each transaction
Card data encryption under the PCI DSS standard, 3D Secure 2 authentication, and real-time anti-fraud scoring that blocks suspicious transactions before bank authorisation even happens.
Carry the compliance burden
Merchant identity verification (KYC), anti-money-laundering controls, and the strong customer authentication (SCA) required by PSD2. The PSP shoulders the regulatory load on your behalf.
Settle your funds
The PSP consolidates your takings, deducts its fee, then wires the net balance to your business bank account. At Bridge Pay, settlement lands within 3 business days.
PSP, payment gateway, acquirer, merchant account: who does what?
These four terms are routinely used as synonyms: wrongly. They are distinct links in the payment chain, and knowing who does what keeps you from paying twice for the same service or signing an incomplete contract.
- 01Your customerConfirms the payment on your checkout.
- 02GatewayEncrypts and carries the card data.
- 03PSPFraud screening, 3D Secure, compliance.
- 04Acquiring bankHolds the merchant account and carries the risk.
- 05Your business accountReceives the net balance within 3 business days.
| Player | Role in the chain | What you sign |
|---|---|---|
| PSP (payment service provider) | Orchestrates everything: technical gateway, acquiring, regulatory compliance and fund settlement | A single payment services agreement |
| Payment gateway | The purely technical layer: transports and encrypts transaction data between your site and the banking networks | A software component, included in the PSP's offer |
| Acquirer (acquiring bank) | A Visa/Mastercard network member: carries the financial risk of transactions and receives funds from issuing banks | An acquiring agreement, usually held through the PSP |
| Merchant account | The safeguarding account where collected funds sit before being paid out to your business account | An account opening tied to the acquiring agreement |
How to choose a PSP: the 7 criteria that matter
Every provider promises « secure payments » and « integration in minutes ». To separate them, work through these seven points in order: the first one alone eliminates half the candidates. Budget half a day to assess a provider seriously against this grid: versus several months to repair a bad choice.
Compatibility with your industry
The knockout criterion. Every PSP publishes a list of merchant category codes (MCC) it accepts, restricts or bans: Stripe and PayPal contractually exclude CBD, psychic services, crypto and high-ticket coaching. Read the prohibited activities in the terms before writing any code: an account terminated after six months costs more than a slightly higher rate.
Real pricing, not the headline rate
Compare the full cost: per-transaction fee, fixed fee per operation, setup fee, subscription, chargeback fees, FX margin. A « 1.4% + €0.25 » ends up dearer than an all-inclusive 1.25% as soon as your average basket drops below €30. Demand a written fee schedule, decline and refund fees included.
The acceptance rate
At the same price, two PSPs can produce a ten-point revenue gap: a poorly tuned anti-fraud engine rejects legitimate customers. Ask for the rate observed on comparable merchants, then measure it in real conditions. One point of acceptance gained is often worth more than 0.2% shaved off the fee.
The payment methods covered
Cards first (roughly 80% of French e-commerce), SEPA transfers for subscriptions and large baskets, Apple Pay and Google Pay on mobile, cryptocurrencies if your audience is international or the card networks are partly closed to you. Bridge Pay covers the lot, including 50+ cryptocurrencies.
Settlement delays
Every day between collection and the money reaching your account weighs on cash flow. The market runs from 2 to 7 business days; Bridge Pay settles within 3 business days. Also check payout frequency and the rolling reserve, common in high-risk: it must be written into the contract.
The quality of the technical integration
A publicly documented REST API, a test environment (sandbox), SDKs, and WooCommerce, Shopify and PrestaShop plugins: the tooling decides whether going live takes two days or six weeks. Beware of « on request » integrations with no accessible documentation, usually the sign of an ageing platform.
Compliance and support
PCI DSS Level 1 certification, 3D Secure 2, data hosted in Europe for GDPR. And support staffed by humans: when a batch of payments fails on a Friday evening, how fast someone answers makes the difference between an incident and a week of lost revenue.
Why mainstream PSPs refuse high-risk sectors
Stripe, PayPal, Mollie and SumUp are built for volume: millions of simple-profile merchants, fully automated onboarding, no human review.
Any sector with above-average dispute rates, shifting regulation or a sensitive image gets excluded outright, not because the activity is illegal, but because reviewing it case by case does not fit their economics. The refusal is not always immediate, either: many merchants get approved at sign-up, then terminated at the first manual review, once volume has built up.
The 4 most common grounds for exclusion
- Structurally high chargeback rates: subscriptions, intangible services, impulse purchases disputed after the fact.
- Unstable regulation: CBD, crypto-assets (MiCA regulation), food supplements, gambling.
- MCC codes flagged « high brand risk » by Visa and Mastercard themselves, whatever the quality of the individual file.
- Reputational risk the PSP's partner banks refuse to carry.
A specialist PSP flips the logic: manual review of every application, acquiring agreements dedicated to sensitive MCCs, hardened anti-chargeback tooling and a rolling reserve calibrated per sector. That is Bridge Pay's positioning: 28 sectors covered at 4.8% per transaction, including:
Crypto payments
Exchanges, Web3 services, digital asset sales
ExploreCBD payments
CBD shops, hemp cosmetics and e-liquids
ExploreGaming payments
Online games, microtransactions, skins and virtual goods
ExploreCoaching payments
Online courses, mentoring, info-products
ExplorePsychic services payments
Psychic practices, esoteric services by phone or online
ExploreSee all 28 accepted sectors
Conditions, documents and pricing detailed sector by sector
ExploreHow much does a PSP cost?
Nearly every PSP charges per transaction, under one of three pricing models:
Blended rate
One identical rate on every transaction, whatever the card type. Readable and predictable: Bridge Pay's model: 2.7% for standard sectors, 4.8% for high-risk, zero fixed fees.
Interchange++
The networks' actual cost (interchange + scheme fees) plus the PSP's margin. Potentially cheaper above €100,000 in monthly volume, unreadable below it: three fee lines per transaction.
Subscription + reduced rate
A monthly plan in exchange for a lower fee. Only pays off when volume is high and stable; avoid it at launch.
Peripheral costs
Beyond the headline rate, hunt down peripheral costs: setup fees (€0 at Bridge Pay), monthly billing minimums, chargeback fees (€15 to €50 depending on the provider), FX conversion margins. In high-risk, add the rolling reserve: a percentage of takings (5 to 15%) withheld for a few months as security against disputes. Our full fee schedule is public on the pricing page, savings simulator included.
Negotiating on volume
One last lever: volume. From €50,000 processed per month, fee schedules become negotiable with most providers: Bridge Pay applies decreasing rates above that threshold. Below it, do not bother negotiating: your energy is better invested in improving the acceptance rate, which weighs more on net revenue than 0.1% of commission.
Opening an account with a PSP, step by step
Opening a payment account follows the same regulatory path (KYC) at every serious provider. At Bridge Pay it takes four steps, and we provide a first response within 24-48h on a complete file.
Sign up and describe your business
Online form: company, website, projected volumes, average basket, selling regions. Ten minutes is enough; the accuracy of this information conditions everything that follows.
Assemble the KYC file
Certificate of incorporation, director's ID, proof of business address, business bank details and identification of beneficial owners holding more than 25% of the capital.
Compliance and risk review
Document checks, website review (terms, refund policy, legal notices) and assessment of your sector risk profile. Expect a first response within 24 to 48h at Bridge Pay.
Activation and go-live
Instant API and sandbox access, production keys upon approval. With a WooCommerce, Shopify or PrestaShop plugin, the first payments land the same day.
The list of documents required for your sector is detailed on the account opening page.
Payment service providers: your questions
What does PSP stand for in payments?
PSP stands for payment service provider. It is the regulated institution that lets a merchant accept online payments (cards, transfers, wallets, cryptocurrencies) then settles the collected funds to the merchant, minus a fee.
What is the difference between a PSP and a payment gateway?
The payment gateway is the technical layer that transports and encrypts transaction data. The PSP includes that gateway and adds the acquiring agreement, regulatory compliance and fund settlement. Not every gateway is a PSP; every serious PSP includes a gateway.
How much does a payment service provider cost?
Expect 1.2% to 2% per transaction for a standard business, and 4% to 10% for a high-risk sector. Bridge Pay charges 2.7% for standard and 4.8% for high-risk, with no setup fee and no monthly subscription.
Which PSP accepts high-risk industries?
A specialist that explicitly publishes the list of sectors it accepts. Stripe, PayPal and Mollie exclude them contractually; Bridge Pay covers 28 high-risk sectors (crypto, CBD, gaming, coaching, psychic services) with human application review.
How long does it take to open an account with a PSP?
From a few hours with automated players (simple businesses only) to several weeks through an acquiring bank. At Bridge Pay, a complete file receives a first response within 24-48h, high-risk sectors included.
Are PSPs regulated?
Yes. In Europe, a PSP operates under a payment institution or e-money licence (issued in France by the ACPR) within the PSD2 framework: safeguarded merchant funds, strong customer authentication (SCA) and mandatory anti-money-laundering controls.
Start taking payments this week
First response within 48h, no setup fees. Standard sectors at 2.7%, high-risk sectors at 4.8%: cards, SEPA and cryptocurrencies.