What is a Aggregator ?

Aggregator- Service bureau that consolidates electronic billing transactions for re-distribution to companies providing bill presentment applications to end consumers.

Payment Aggregator is also known as Merchant Aggregator. Payment Aggregators are service providers through which e-commerce merchants can process their payment transactions. Aggregators allow merchants to accept credit card and bank transfers without having to set up a merchant account with a bank or card association.

• The payment aggregator is facilitating the collection of payment from the consumer via credit cards, debit card or bank transfer to the merchant. The merchant is paid by the aggregator in 1-3 working days. These services are the most popular forms of payment behind credit cards.

• The Payment aggregators typically hold consumer credit card detail to allow for faster purchases or hold money in an account to allow for future purchases.

• Firms such as PayPal, Google Checkout, and Amazon Payments differ in their payment aggregator approaches, costs, and services delivered to merchants.

• Merchants must thoroughly analyze the costs and benefits associated with each provider to ensure they obtain the best payment solution.

• Payment aggregators refer to a unique merchant service in which one merchant account is used to represent a number of merchants opposed to the traditional model which disburses a merchant account to each merchant.

Benefits

• Quick application process

Payment aggregators offer a quick entry into the world of small business. Without the need to formally submit a number of documents or applications, your startup business can get started processing credit cards near instantly.

• Efficient and cost-effective for small transactions

The payment aggregator model tends to provide a boost for credit card & wallet payment processing, with minimal start-up fees or fixed costs. In substitute of start-up fees or fixed rates, variable merchant fee is added on to each successful transaction.