Most people believe that open source payment gateway technology is absolutely free. They think an open-source payment processing solution will provide the means for a starting firm without a budget to accept payments online. However, this is not the case.
In terms of payment processing, there are no free, open source payment processing platforms accessible.
Even if you discover a free, open source payment gateway, it must operate in a PCI-compliant environment (with annual PCI audits cost between $20 and $25k). You will also need to deploy the product in a cluster. That being said, you will need to keep at least 4-5 nodes running (for your database, etc.). You’ll also need to establish a new acquiring bank arrangement. As a result, you will need to go through an acquirer integration. You must then create a system for merchant onboarding, provisioning, and payment reconciliation. Moreover, additional integrations and EMV certifications are required if you want new terminal solutions.
What makes open source payment processing platforms a great choice for businesses?
First and foremost, open source payment processing platforms must be understood as configurable and flexible solutions. They permit any alterations to their source code.
Open source payment gateways often only have rudimentary features. This enables developers to personalize payment gateways and add plugins. Furthermore, they may enhance fundamental functionality for internet firms and develop precisely what they want for online payments.
With access to the code, development teams can easily add new functionality to the payment software. For example, they can offer new payment options, allowing for more international business development.
Remember that having your own open source payment gateway product or developing payment gateway software from scratch is only financially feasible if your processing volumes are large enough and gateway maintenance costs are within the savings offered by eliminating and reducing specific fees.
Merchant fees for payment gateway usage
A merchant’s total payment to the payment gateway provider typically contains three key fee types:
● Fees levied by the gateway itself
● Fees charged by the acquiring bank that works with the gateway
● The cost of the processing
Let’s take a deeper look at a few specific cost elements.
● Only direct interfaces with Visa or MasterCard can remove exchange and settlement charges. Nevertheless, based on our experience and analysis, direct connections make sense only for extremely large processing volumes. Some of our customers with yearly revenues in the billions of dollars, cannot afford direct integration. In most circumstances, signing a deal with an acquiring bank is preferable to attempting to become an acquirer yourself.
● Surcharges can be lowered (that’s great news!). The amount of surcharges you pay an acquirer is determined by your processing volume and the terms of agreement with the acquirer. If the amounts of interchange and assessments are listed on merchant statements, you may examine them and compute the real premium you pay to the acquirer, as well as the number of gateway fees paid on top of them. Suppose you are unable to perform these calculations. In that case, you can use an average amount as a basis (let’s suppose 1.8%, although the exact amount may differ depending on the transaction and payment card used) and calculate how much you are paying over this amount. This additional fee can really be reduced if you use your own brand-new or open source payment gateway. However, we must emphasize that the specific savings are determined by your volume and the terms of agreement with the acquiring bank.
● Processing fees paid to card companies (Visa, MasterCard, and others) for network usage must be paid regardless. Therefore, reducing this cost item will be difficult.
UniPay Platform: How it works
The UniPay Gateway is an open source white-label payment processing system. It has a plethora of technological features that are essential for modern enterprises. These include 3D Secure, EMV, P2PE, various forms of payment cards, and ACH transactions. Among other things, UniPay also allows you to handle foreign payments through a variety of worldwide connectors.
The software package provides integration logic as well as several PayFac-related capabilities. Many connectors have already integrated recurring billing functionality and chargeback management algorithms. With access to UniPay’s open-source code, you receive a dependable EMV terminal solution as well as an omnichannel mobile payment solution. You may also license the relevant software to have code access tailored to meet your specific business requirements.
Some UniPay customers are included in the Fortune 500. The key advantage of our platform is that it is not limited to huge corporations. Those who can pay the minimum monthly cost can benefit from our product.
You can begin with a hosted solution and then progress from there. You may then license the source code and deploy the solution into your data center. This facilitates the entry of new enterprises into payment processing. They will certainly acquire traction as they grow.
Call our experts to discover more about what a strong open source payment platform should look like and how to select the best option for your company.
