Creating an unlicensed card-not-present (CNP) Payment Services Provider (PSP) can be an attractive option for entrepreneurs who want to enter the payment processing industry, but don't want to go through the time and expense of obtaining a licence. However, it's important to keep in mind that operating an unlicensed PSP comes with certain risks and limitations. Here are some steps you can take to create an unlicensed CNP PSP:
- Research the market: The first step in creating an unlicensed PSP is to research the market. This includes understanding the services offered by existing PSPs and identifying any gaps in the market that you can fill. It's also important to be aware of the risks and limitations of operating an unlicensed PSP.
- Develop a business plan: Once you have a clear understanding of the market, the next step is to develop a business plan. This should include details on your target market, the services you will offer, and your financial projections. It's important to have a solid business plan in place, as it will be required when applying for a merchant account and other services.
- Obtain a merchant account: One of the most important steps in creating an unlicensed PSP is to obtain a merchant account. This is a type of bank account that allows you to process credit card transactions on behalf of your customers. It's important to research different merchant account providers and compare their fees, terms, and conditions before choosing one that best suits your business.
- Secure payment gateway: In order to provide payment services, you will need to have a secure payment gateway in place. This is a type of software that connects your website or app to the payment networks and enables you to process credit card transactions. It's important to choose a payment gateway that is PCI compliant and has a good reputation for security and reliability.
