Card payments guide
When you start taking card payments, you run into a wall of terms. Gateway, processor, acquirer, interchange, IC++, SAQ A. Some providers use them precisely so you will not work out what you are paying for.
Here we take them one by one. Every answer is short and plain, with numbers wherever numbers exist. Where it is about RONPAY, we tell you how we do it. Where it is not, we tell you how the market works.
Who does what in a card payment
What is a payment gateway?
The gateway is the technical bridge between your shop and the payment networks. It captures card data securely, sends it for authorisation and returns the answer: approved or declined. At RONPAY the gateway runs on the RoxPay infrastructure and has no monthly fee.
What is the difference between a gateway and a payment processor?
The gateway is the part you see: the payment page, the plugin, the API. The processor carries the transaction through the card network to the issuing bank and back, then handles settlement. Many providers, RONPAY included, give you both in one contract.
What is an acquiring bank?
The acquirer is the bank that accepts card payments on the merchant's behalf and pays out the funds. The issuer is the customer's bank, the one that issued the card. RONPAY works with RoxPay's partner acquiring banks.
What is a merchant account?
It is the account that authorises you to receive card payments. You open it after a check of your company and business (KYC). At RONPAY the account is usually active within 1 - 24 hours, and within 1 - 3 days for higher-risk profiles.
What is an MCC code?
An MCC (Merchant Category Code) is a four-digit code that says what you sell: hotels, pharmacies, online retail and so on. Some card network rules, and sometimes your risk classification, depend on it.
Can a sole trader accept card payments?
It depends on the provider. Many work with sole traders as well as limited companies, as long as the business is legal and you have a real website or point of sale. Write to us and we will tell you whether it works in your case and which documents you need.
What a card payment really costs
What is interchange?
Interchange is the part of the fee that goes to the card issuer. In the European Economic Area it is capped by regulation for consumer cards: 0.20% for debit and 0.30% for credit. For business, premium and non-EEA cards it is higher.
What are scheme fees?
Scheme fees are charged by Visa, Mastercard and the other networks on every transaction. They are small, but they exist, and they vary by network, card type and issuing country. Under IC++ you see them separately on your invoice.
What does IC++ mean?
IC++ stands for Interchange ++. You pay the real interchange of each card, plus scheme fees, plus the processor's margin. There is no hidden average. At RONPAY the margin starts from 0.55%, plus 0.05 EUR per transaction.
What is the difference between IC++ and a flat (blended) rate?
With a flat rate you pay the same percentage on every card, for example 1.5%. The provider averages for you, and cheap cards subsidise expensive ones. With IC++ you pay exactly what each card costs. If most of your customers pay with European consumer debit cards, IC++ usually comes out cheaper.
How much does card processing cost in Europe?
It depends on the model. Published flat rates for European consumer cards are typically around 1.5 - 1.8% plus a fixed fee of about 0.25 EUR. Under IC++, at RONPAY, a 100 EUR payment with a European consumer debit card costs 0.20 EUR interchange, 0.55 EUR margin and 0.05 EUR fixed fee, plus scheme fees. The full calculation is on Card processing fees.
How can I reduce my processing fees?
Move to IC++ if many of your customers use debit cards. Ask for an offer based on your real volume, not an average. Check the fixed fee, especially if you sell low-value items. And reduce chargebacks, because every dispute costs extra.
Which hidden costs should I look for in an offer?
Monthly gateway fees, setup fees, monthly minimums, refund fees, chargeback fees, currency conversion fees and rolling reserves. At RONPAY the gateway is free and there is no monthly fee.
Authentication, card data and compliance
What is 3D Secure 2?
3D Secure 2 is the authentication step where the customer confirms the payment in their banking app or with a code. It is the newer version, which sends the bank more data about the transaction, so many payments go through with no interruption. It shifts fraud liability from the merchant to the issuing bank.
What are SCA and PSD2?
PSD2 is the European payment services directive. SCA (strong customer authentication) is its rule requiring two factors for online payments, such as a phone and a fingerprint. There are exemptions, such as low-value payments or merchant-initiated recurring payments.
What is PCI DSS?
PCI DSS is the security standard for anyone who captures, transmits or stores card data. Level 1 is the strictest. RONPAY payments run on the RoxPay infrastructure, certified PCI DSS Level 1. Details on the PCI DSS page.
Do I need to be PCI DSS compliant too?
Yes, every merchant that accepts cards must validate its compliance. The good news: if you use the hosted payment page or secure fields, card data never passes through your server, and the short SAQ A questionnaire is usually enough.
What is tokenisation?
Tokenisation replaces the card number with a code that has no value outside the payment system. You can charge the same customer again, for subscriptions or one-click payments, without storing the card number.
How do you prevent online payment fraud?
With 3D Secure 2, risk rules on every transaction, amount and frequency limits, and checks that the card country matches the delivery country. At RONPAY anti-fraud checks run on every payment. More on Security and anti-fraud.
Chargebacks, refunds and reserves
What is a chargeback?
A chargeback is a payment disputed by the customer directly with their bank, not with you. The bank pulls the amount from your settlement until the dispute is resolved. You can respond with evidence: the order, the delivery, your communication with the customer.
How long can a customer file a chargeback?
With Visa and Mastercard the usual limit is up to 120 days from the transaction or from the date the product should have been delivered. Some reasons have different limits.
What is the difference between a refund and a chargeback?
A refund is something you do, voluntarily, and it keeps the customer happy. A chargeback is opened by the customer's bank, costs a dispute fee and hurts your statistics. If a customer is right, refund quickly.
What is a rolling reserve?
It is a percentage of your takings the processor holds for a period as a guarantee against chargebacks, then releases. It applies mostly to high-risk businesses. The percentage and the duration should be written clearly in the contract.
What is a high-risk merchant?
A business with a higher dispute rate or special card network rules: subscriptions, travel, gaming, supplements, cross-border sales and others. RONPAY works with such merchants too, with routing across several acquirers. See High-risk merchants.
How to add card payments to your site
How do I add card payments to an online shop?
The simplest way is a plugin: install it, add your API keys and test. RONPAY has plugins for WooCommerce, Magento and PrestaShop. For custom platforms there is a REST API with a test environment.
Can I take payments without a website?
Yes. You send a payment link by email, SMS or WhatsApp, and the customer pays by card on a secure page. It works well for deposits, bookings and phone orders.
How do recurring payments work?
The customer pays the first time with authentication, and their card is tokenised. You initiate the next payments on the agreed date, without the customer entering their details again. If a payment fails, the system retries according to rules you set. See Recurring payments.
Can I accept Apple Pay and Google Pay?
Yes. Digital wallets work on top of the customer's card, and the fee is that of the card behind them. At RONPAY they are among the 40+ payment methods.
Can I offer payment in instalments?
Yes, through Klarna. The customer pays in instalments and you receive the full amount after approval. Financing, eligibility checks and instalment collection are handled by Klarna. See Buy Now Pay Later.
When the money reaches you
What does settlement mean?
Settlement is when the funds from approved payments reach your company account, after fees are deducted. Until then a payment is only authorised.
What does T+1 mean?
T is the transaction day. T+1 means funds are settled the next business day, T+3 after three business days, and so on.
How quickly does RONPAY pay out?
Usually within 24 - 48 hours. For higher-risk profiles, settlement is usually at 48 hours.
What is a pre-authorisation?
A pre-authorisation blocks an amount on the customer's card without capturing it. Hotels and rentals use it as a guarantee. At the end you capture the real amount or release the hold.
Want the answer for your case?
Tell us what you sell, how much and on which platform. We will answer with numbers, not jargon.