As pioneers, many things have to be checked while you start a new business. Many guides/notes are available to help you – they make your way and give a better understanding of the process. This overview will introduce you to payment flows, concepts like payment gateways, payment processors, how these processors classify risk industries.


Online payment can be classified as the Transaction made online. In return for the goods, services, etc. This is nothing but the exchange of money online, in effect, it means processing transactions electronically. These transactions happen with the help of the internet to facilitate direct connection with the selling product and the buying product. This method is chosen by the buyer through the CREDIT CARD, DEBIT CARD, E-WALLETS, or a checking account. 

The vendor has to set up a complex and secure system in place in the backend, to accept online payments.  For a merchant to accept online payment, they need to work with a payment partner. 

This brings us to highlight the major factor that helps us to process these transactions in our comfort zone. 


The payment processor also checks for security measures such as making sure that the customer’s card data is correct. Fraudulent practices occur sometimes, so the payment processing company must ensure that doesn’t happen.

A payment processor is a company that handles transactions so that your customers can buy your products. That means the payment processing company communicates and relays information from your customer’s credit or debit card to both your bank and your customer’s bank. 

If there are enough funds in your customer’s card and it is valid, the transaction will go through. And all of this all happens in a matter of seconds.

In return it is nothing but – A payment processor is a mediator between the merchant and the bank involved in the transaction. This service provider validates and authorizes the payment, by checking if the buyer has sufficient funds in their account, if there are no limits on the account, or if the card is still valid, and then transfers the amount to the seller. This can be either for online payments (performed on websites) or for in-person payments. 


1.     PayPalCalifornia, United States
2.    Amazon PayWashington, United States
3.     Google PayCalifornia, United States
4.      Bit PayArlington, Virginia
5.     GoCardlessUnited Kingdom
6.     Razor PayBangalore, Karnataka
7.     CheckOutLondon, United Kingdom


These companies make the ecosystem of Payment Processing. The payments ecosystem is made up of a combination of players that interact with each other during the payment transaction process: issuers and acquirers, credit card networks, payment processors, payment gateways, independent sales organizations, value-added resellers, and payment facilitators. All of these entities play specific roles in the payment processing cycle. The following illustration shows some examples of these players.

What is a merchant account?

Merchant accounts are essential to businesses, especially those that accept credit cards online. Without a merchant account, you cannot accept money from a customer’s credit or debit card because you have nowhere to put the money. So, a merchant account is a bank account that accepts debit and credit card payments. Without it, a business could not accept these payment forms.

What is a payment gateway?

The payment gateway connects the payment processor and merchant account to credit or debit card companies such as Visa or American Express. In essence, it’s connecting your customer’s financial account to your merchant account. Without a payment gateway, you would be missing a major part of completing a financial transaction. You would have all the parts needed to move your money or receive money, but without a payment gateway, you cannot receive your customer’s payment.

Payment processors and merchant accounts can be combined with a payment gateway. It just depends on if they use a third-party source or have a department in-house to do the work. If a third party is used, the third party communicates with the credit card company to complete the transaction.


Risk-reward is a general trade-off underlying nearly anything from which a return can be generated. Anytime you invest money into something, there is a risk, whether large or small, that you might not get your money back—that the investment may fail. For bearing that risk, you expect a return that compensates you for potential losses. In theory, the higher the risk the more you should receive for holding the investment, and the lower the risk, the less you should receive, on average.


The businesses are considered high-risk based on two conditions: high-risk industry type and a high risk of financial failure. The first condition has to do with safety and health concerns, while the second condition addresses the company’s viability (continued profitability). 

Discover the main reasons for a business to be considered high-risk:

  • High level of chargebacks;
  • High sales volumes;
  • High-risk industry type;

Check out the list of the most common high-risk businesses:

  • Gambling;
  • Gaming;
  • Booking and travel agencies;
  • Escort;
  • Telemarketing;
  • Bitcoin/Forex trading;
  • E-cigarettes;
  • Collection agencies


A low-risk customer, risk, occupation, or property is not very likely to be exposed to danger. Expect to pay more for a policy that covers a high-risk occupation compared to a low-risk line of work. … A low-risk customer, risk, occupation, or property is not very likely to be exposed to danger

Kryptova can get you the merchant services your business needs. At Kryptova, we can help you choose the right merchant service provider. With the right merchant account, your business will thrive and get the most out of our services. In as little as 48 hours, Kryptova can present you with a number of merchant accounts to choose from.

Additionally, we provide the most competitive rates without compromising quality or security”                                  

                                Trust Kryptova to Establish Your Services.