themos
Guide·8 min read

How to Choose a PSP in 2025: A Merchant's Guide

Selecting a payment service provider is one of the most important decisions for your business. Here's what actually matters and what to ignore.

Why PSP Selection Matters

Your payment service provider affects your bottom line more than most merchants realize. It's not just about processing fees - it's about approval rates, settlement times, chargeback handling, and whether you can actually get accepted in the first place.

What to Evaluate

1. Vertical Appetite

Not all PSPs want all merchants. Before you spend hours on an application, verify they actually accept your vertical. iGaming, forex, adult, nutraceuticals - these require PSPs with specific appetite and expertise.

2. Rate Structure

Don't just compare headline rates. Understand the full cost:

  • Transaction fees (percentage + fixed)
  • Monthly minimums
  • PCI compliance fees
  • Chargeback fees
  • Currency conversion markups
  • Settlement fees

3. Integration Complexity

Some PSPs have excellent developer documentation and sandbox environments. Others... don't. Evaluate integration effort before committing.

4. Settlement Terms

When do you get your money? Daily settlement? Weekly? What about reserves and holdbacks? For cash-flow-sensitive businesses, this matters enormously.

5. Geographic Coverage

If you sell globally, you need a PSP that can handle international cards efficiently. Local acquiring in key markets can significantly improve approval rates.

Red Flags to Watch For

  • Vague pricing - if they won't give you clear rates upfront, run
  • Long-term contracts with high exit fees
  • Hidden reserves that are hard to release
  • Poor support responsiveness during the sales process
  • No clear chargeback dispute process

The Selection Process

  1. Define your requirements - Volume, geography, currencies, vertical
  2. Create a shortlist - 3-5 PSPs that actually fit your profile
  3. Get detailed quotes - Apples-to-apples comparison on full costs
  4. Check references - Talk to existing merchants in your vertical
  5. Review contracts carefully - Pay attention to termination clauses

Key Takeaways

  • Start with vertical fit, then compare rates
  • Total cost matters more than headline rates
  • Settlement terms affect cash flow significantly
  • Integration quality varies wildly between PSPs
  • Always have a backup plan

Need help finding the right PSP?

We help merchants in complex verticals find payment providers that fit.

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