Payment Processors are companies that act as a bridge for handling financial transactions between a number of entities that use them. They were invented primarily to provide a fast, convenient, and secure money transfers over the internet by allowing a third party company to conduct the transaction without exposing credit card or bank details. In the past, it has been used only to handle credit card transactions but not until now as many of them also serve as means for exchanging currencies and storing money. It has been used only by merchants in the past but today, even private individuals has the ability to use them for online transfers between other individuals or businesses.
Though there are a number of Payment Processors you would see online, not all of them are provided for personal (individual) use and allows money storage. When payment processors allow personal use and storing of money, they can be described as account-based payment processors. They now provide E-Wallet or Digital Wallet to their users; or they themselves act as E-Wallets. Money stored in E-Wallets are called Electronic Money, Virtual Currency, Cyber Cash, etc (rumble the words) . Debit cards, ATM cards, and Prepaid cards (even mobile phones and smartphones that can store credentials of a person and carry out financial transactions, i.e. mobile wallet) are also sometimes called E-Wallets and the money in them – Electronic Money and almost all account-based payment processors also offer such services.
Popular Payment Processors
- Paypal – It is probably the first account based payment processor. It is widely used by almost all businesses online. Because it is regulated in the USA, as it is also a subsidiary of eBay, only a few trading brokers use it. Perhaps Paypal is strict in online gaming and gambling sites.
- Payza - Formerly known as AlertPay. Based in Canada, Payza has been developed to become a Paypal alternative that can support micro-businesses online. It gives a way for easy verification while maintaining a set of low fees on its services. Recently, they are finally able to issue debit cards to its members for fast and easy withdrawals. (AlertPay site is still active but you may log in at Payza using your AlertPay login details)
- Skrill – Formerly known as MoneyBookers, it is the first FSA regulated payment processor. It is popular on gaming, gambling and trading sites; in fact, it’s probably the universal payment processor for such types of businesses. Many online companies today also use Skrill aside from Paypal.
- LibertyReserve – (LibertyReserve is now closed exposed in muti-billion financial scam) A popular processor with the lowest fee on transactions, LibertyReserve is widely used by earning/get-paid-to websites (not necessarily online job sites). It is also popular on high yield investment programs. Now it is also used by many trading companies. Because you cannot link bank or credit cards here, the only way to withdraw or deposit money is through online exchangers.
- WebMoney – also called wmtransfer started as a payment processor for Russians but now it offers services globally. It has also been a universal processor in forex trading maybe because of a great number of Russian traders and brokers.
- nTrust - a processor that can accept multiple currencies with 4 main currencies at vault namely USD, AUD, CAD, and PHP; that means when you receive any of the four currencies, you received them as they are – not converted. There is no transfer fee between nTrust accounts, even deposit to your own account is free. Contacts can be added as neighbors for easy transactions.
- Neteller – A payment processor that appears to follow the steps of Skrill, Neteller offers free debit card to all its clients and virtual Mastercard with an excellent security feature on all accounts. It is also regulated by FSA.
- PerfectMoney – you can call it a payment processor for savings because it allows account holders to earn interest annually (about 4% annual interest). It’s fees are as low as that of LibertyReserve. It also offers income opportunity through loan programs and local selling of prepaid PerfectMoney cards.
- OKPay – Another payment processor now used in forex trading. It has been introduced by a number of brokers such as UWCFX, LiteForex, and ForexCent; offering bonuses for using it. Aside from forex brokers, it is now used by a number of paying sites and online services.
- PayWeb - a new payment processor that allows you to create echecks. It has an optional SMS feature for secure transactions. Some of its partner sites offer bonuses which are transferred on PayWeb balance. Its difference with the most payment processors is that its fee for transfer between accounts is fixed $0.50.
- ATMxPay – a payment processor for payment processors, ATMxPay can accept WebMoney, PerfectMoney, Skrill, Paypal, Neteller, Ukash, OKPay, and Payza aside from Cheque, Credit card deposits, bank wire, and Western Union. It is Pci Compliant and has a lot of security features other than the usual ones like Carbon Layer Code, Self transfer pin, and GX-Codes.
- DixiPay – Another low fee website with a considerable number of merchants. It has also a fee of as low as that of Liberty Reserve. Few brokers that use DixiPay are AlpariNZ and FXTM.
- AlliedWallet – a payment processor that can accept multiple currencies. It is accepted by brokers such as: FXOpen, HotForex, FxPrimus, RSQ, and WorldWideMarkets.
- SolidTrustPay – a Canada-based payment processor that has an enhanced security feature. It’s TrustCard is a new type of card designed to fight the increasing card and bank account frauds nowadays. It has no personal information so that if it’s been lost or stolen, it will be of no use to anyone else.
- EgoPay - a Canada-based payment processor that has an enhanced security feature. It’s TrustCard is a new type of card designed to fight the increasing card and bank account frauds nowadays. It has no personal information so that if it’s been lost or stolen, it will be of no use to anyone else.
- LiqPay – a very innovative processor based in Ukraine that is mobile based. Its newest innovation is the iPay terminal which allows you to swipe Visa and Mastercards on your mobile phone through a sophisticated key-like device called card reader.
- Zen - is a digital currency developed by Zurker that is becoming popular today due to it’s stability because it is based or tied in the performance of 22 international currencies from major economies on five continents – therefore, it can be used for safeguard against exchange rate fluctuations. It is currently used to buy vshares for Zurker ownership but a few microworkers started accepting the ecurrency already.
Other Payment Processors
- EuroGoldCash - accepted by Instaforex
- Dwolla - see this processor present in Finovate 2012 (currently US accounts only)
- Serve - US accounts only (based on American Express). Sign up here for free $10.
Other Processors To Watch For
- VirtaPay - payment processor under development and lets you earn money while still using it.