Mobile payment or Mobile Billing (also referred to as mobile money, mobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque (or check), or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, it is only recently that the technology to support such systems has become widely available. Direct mobile billing, also called direct to bill, is a method of paying for merchandise by charging the purchase to a cellular telephone (mobile phone) account. At the time of checkout, the customer selects the mobile billing option on a smartphone and follows a two-factor authentication procedure. After the authentication, which usually involves a PIN (personal identification number) and one-time password, the consumer's mobile account is charged for the amount of the purchase, plus applicable taxes and, in some cases, a processing fee. Direct mobile billing does not require any previous registration, and it does not involve any other sources of funding such as credit cards or bank accounts. Direct mobile billing has gained widespread popularity in Asia and Europe, and is gradually catching on in the United States as concerns about privacy and security are being addressed.
A payment processor is a company (often a third party) appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks.They are usually broken down into two types: front-end and back-end. Front-end processors have connections to various card associations and supply authorization and settlement services to the merchant banks merchants. Back-end processors accept settlements from front-end processors and, via The Federal Reserve Bank for example, move the money from the issuing bank to the merchant bank. In an operation that will usually take a few seconds, the payment processor will both check the details received by forwarding them to the respective card's issuing bank or card association for verification, and also carry out a series of anti-fraud measures against the transaction. Additional parameters, including the card's country of issue and its previous payment history, are also used to gauge the probability of the transaction being approved. Once the payment processor has received confirmation that the credit card details have been verified, the information will be relayed back via the payment gateway to the merchant, who will then complete the payment transaction. If verification is denied by the card association, the payment processor will relay the information to the merchant, who will then decline the transaction.
PSP (Payment Service Provider) a offers shops online services for accepting electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking. Typically, they use a software as a service model and form a single payment gateway for their clients (merchants) to multiple payment methods. Typically, a PSP can connect to multiple acquiring banks, card, and payment networks. In many cases, the PSP will fully manage these technical connections, relationships with the external network, and bank accounts. This makes the merchant less dependent on financial institutions and free from the task of establishing these connections directly, especially when operating internationally. Furthermore, by negotiating bulk deals they can often offer cheaper fees. Furthermore, a full-service PSP can offer risk management services for card and bank based payments, transaction payment matching, reporting, fund remittance and fraud protection in addition to multi-currency functionality and services. Some PSPs provide services to process other next generation methods (payment systems) including cash payments, wallets, prepaid cards or vouchers, and even paper or e-check processing. A PSP is thus a much broader term than a payment gateway which is how the payment card industry refers to them. PSP fees are typically levied in one of two ways: as a percentage of each transaction or a fixed cost per transaction.
Processing by Credit Card - Debit Card - Wire Transfert - Gateway Payment - Wallet Payment - Mobile Billing - IPS Billing - Micropayment SMS and Audiotel