Kostiantyn Prymak
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Payment gateway providers for Cyprus, how to choose the best one

Kostiantyn Prymak

Today the smooth processing of online payments is crucial for businesses seeking to enhance customer convenience and optimise cash flow. Payment gateways serve as the core of this process, enabling secure transactions while offering businesses various options and functionalities. However, in Cyprus, choosing the right payment gateway aligning with regulatory standards is essential. We have prepared a comprehensive guide to selecting the best payment gateway for your business in Cyprus

Understanding Payment Gateways

A payment gateway is a technology-based service that acts as a bridge between an online business or merchant’s website and the financial institutions that handle transactions, such as banks or card networks. Payment gateways secure online transactions by validating credit card details, ensuring fund availability, and approving transactions while safeguarding sensitive customer data. This encrypted system eliminates the risk of holding customer information, adhering to stringent security and compliance standards mandated by Cypriot regulations which we will discover now

Cypriot Regulations

Cyprus’s regulatory framework spans various bodies, each overseeing distinct financial domains:

  • Cyprus Securities and Exchange Commission (CySEC): Primarily regulating the investment services market and transactions in transferable securities, CySEC extends its purview to collective investments, asset management sectors, administrative services companies, and even crypto asset service providers

 

  • Central Bank of Cyprus (CBC): As the central monetary authority, the CBC licences and supervises payment institutions and electronic money institutions, playing a pivotal role in ensuring their operations adhere to regulatory standards

 

  • Commissioner for Personal Data Protection (CPDP): Overseeing compliance with the General Data Protection Regulation (GDPR) and Cyprus’s personal data laws, CPDP actively scrutinises adherence to data protection regulations, drives compliance, and handles complaints

Triggers for Licensing

Licensing requirements are contingent upon the services offered, aligning with MiFID II and other EU directives. Investment services, credit institutions, payment institutions, electronic money institutions, and crypto asset services providers fall under the regulatory umbrella, depending on their activities within Cyprus

Consumer Protection and Lending

Cyprus meticulously regulates consumer lending through laws like the Consumer Credit Contracts Law and Consumer Protection Law. These laws safeguard consumers by curbing unfair practices, ensuring transparent information disclosure

Secondary Market Loan Trading

While general contract law principles apply to loan trading, specific regulations via The Sale of Credit Facilities and Related Matters Laws restrict the trading of credit facilities to authorised entities, mandating prior CBC approval for any entrants

Collective Investment Schemes

CySEC supervises collective investment schemes, crucial for fintech companies managing assets. Alternative investment fund managers, regulated under the AIFMD, fall under Cyprus's purview, ensuring compliance with the regulatory regime

Payment Services and Open Banking

The Payment Services Laws, transposing PSD2 into national law, oversee payment institutions and account information service providers. Open banking fosters customer access to financial data, ensuring regulated access to payment accounts

Understanding these regulations is integral for companies looking for a reliable payment gateway in Cyprus. Compliance not only ensures operational viability but also nurtures consumer trust and confidence, vital for sustainable growth in this burgeoning sector

Vital criteria for best payment gateway

Now let’s analyse deeper which criteria payment gateway should address to completely satisfy needs of the businesses, operating in the Cyprus digital market:

Cost Efficiency

Evaluate setup fees, monthly charges, and transaction fees. For high-value transactions, look for monthly fee and lower transaction charges

Types of Cards Supported

Ensure that the gateway supports commonly used credit cards like Visa and MasterCard, as well as other card types, if relevant to your customer base

Holding Time

Understand the duration for which funds are held before settlement to your account, impacting cash flow management

Multiple Currency Support

International business operations demand gateways capable of handling diverse currencies and foreign transactions and associated fees

Recurring Billing Support

For subscription-based models, prioritise gateways equipped for storing customer details and automating recurring transactions

Hosted vs. Non-hosted

Evaluate whether hosted gateways or integrated gateways suit your business model better, balancing security with a payment process

Security Standards

Ensure the gateway complies with PCI DSS Level-1 standards and offers fraud detection mechanisms for enhanced security

Mobile Payment Support

Look for the payment gateways accommodating mobile payments to cater to customers using various devices

Transaction Limits

Be mindful of any transaction limits imposed by the gateway, especially if your business handles high-value transactions

Integration Capabilities

Check if the gateway seamlessly integrates with accounting or invoicing systems to automate payment updates

Choosing the Right Gateway

The choice of a payment gateway significantly impacts your business’s efficiency and customer experience. To assist in decision-making, a comparison chart highlighting various gateway features and functionalities can aid in making an informed choice

Transferty stands as a top-tier solution for the Cypriot market, offering an impeccable Payment Gateway designed to bolster revenue streams effectively. We address critical pain points, providing guidance on chargeback prevention, streamlining processes, and optimising profit generation. Our global reach allows seamless integration with acquiring banks and PSPs worldwide, enabling effortless transaction processing for expanding global ventures

With a comprehensive approach, we minimise chargebacks by strategically managing refunds, providing dispute notifications, and offering robust document support. The system’s intelligence automatically selects the optimal acquirer for each transaction, ensuring enhanced success rates and maximum payment conversions. Additionally, our commitment to diversifying payment methods, encompassing bank cards, e-money, cryptocurrencies, among others, fuels your business growth by catering to various sales models and amplifying profitability

Conclusion

Selecting the best payment gateway involves aligning the features and capabilities of the gateway with your business model, region-specific requirements, and global payment acceptance needs. Moreover, ensuring compatibility with accounting systems streamlines financial management, enhancing overall efficiency. At Transerty, we understand the criticality of choosing the right payment gateway. That is why we are tailoring our payment solution to ensure compliance and customer satisfaction, as well as streamline business processes

FAQ

Are there Variances in Country-Specific Merchant Accounts?

In essence, all merchant accounts operate similarly, allowing acceptance, holding, and withdrawal of received funds. However, where differences arise is in the interface layer, adapting to specific country languages. Moreover, payment preferences vary from state to state, with each country having its favoured payment modes. We prioritise the most preferred payment method and arrange others accordingly. Additionally, we enable customers to make purchases in their local currency

Are there Distinctions in Country-Specific Payment Gateways?

Absolutely, there exist notable differences in country-specific payment gateways. Primary among these is the payment method. Each country tends to have its preferred payment approach. For instance, according to Statista, credit or debit cards are extensively used in America, while digital wallets dominate across the Asia-Pacific region. Our approach entails arranging payment methods based on their popularity, prioritising the most commonly used methods

Do you accept international currencies?

Our experts constantly analyse market behaviours in various countries to compile a list based on the most frequently used currency in imports and exports. We provide customers with the option to pay in their local currency. Additionally, we focus on adapting the language of the checkout page in our country-specific payment gateways to the local language. This feature significantly contributes to building customer loyalty and enhancing retention rates. These are just a few of the benefits we offer through our country-specific merchant account

Find out all the benefits of Transferty payment gateway for your business

Book a call or fill out the contact form to help our team identify your needs and provide the best service for boosting your payments

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