Point of Sale ISVs and VARs looking for a way to differentiate themselves in 2025 should evaluate the benefits of offering merchant services through a white-label payment gateway.
By offering payment processing under your brand, you can provide merchants with a way to deliver modern payment experiences and streamline their operations while unlocking new revenue streams for your business.
What Is a White-Label Payment Gateway?
You know a payment gateway allows merchants to accept and process payments online and in-store. With a leading payment gateway, customers can choose their preferred payment method, including credit, debit, mobile wallet, ACH, and alternative payments like QR code payments and text-to-pay. The gateway encrypts payment data, communicates with payment processors, and sends back transaction authorizations.
ISVs and VARs partner with payments companies to provide those capabilities, and merchants usually see the payment company’s branding. However, with a white-label payment gateway, you can offer those capabilities under your brand and enhance your clients’ experiences.
White-Label Payment Gateway vs. PayFac
You have options for providing a branded payment experience. You have the option to become a payment facilitator (PayFac). With this model, you must meet the requirements for becoming a payment facilitator, and then get a merchant identification (MID) to process your clients’ payments. PayFacs take on more of the responsibility and risk, including setting up your own payments infrastructure, managing underwriting and approvals, controlling the merchant onboarding process, and deciding on schedules. Becoming a PayFac can be a smart business move for some solutions providers, allowing you to tailor payment services to your customers and increasing the revenue you receive from payments. However, it isn’t the right move for every ISV or VAR.
A white-label payment gateway allows you to offer payments under your brand while your payment partner provides the payment gateway solution and services that you offer your customers.
Features to Look for in a White-Label Payment Gateway
When deciding which white-label payment gateway will be best, consider these features:
- Dynamic Branding
A white-label payment gateway gives you the ability to brand and offer the gateway as your own solution. However, that means more than just adding a logo. Look for a partner that offers dynamic payment device branding and advertising. A leading partner will accomplish this by working with you to add your branding information throughout the payment portal and gift card ordering pages. This keeps your brand in front of your clients as they are using platform features.
- The Full Range of Payment Methods
Merchants need to offer their customers a wide range of payment acceptance options, from credit and debit to digital wallet and unattended payments. The best white-label payment gateway partners offer payment options that go beyond the basics, including recurring payments and TextPay invoicing for field services. Additionally, ensure that the partner you choose has white-labeled omnichannel gift programs so merchants can sell, load, or redeem gift cards online or in-store.
- Industry-Specific Solutions
Different industries require specific sets of payment features. Ensure that your white-label payment gateway partner enables tailored solutions for the industries and markets you serve. For example, hospitality merchants will need features like tip adjust, incremental authorizations for bar tabs and PCI-Validated P2PE. Some businesses, like food trucks, may require the ability to process transactions offline and will need EMV store-and-forward functionality. Industry-specific features like these can offer a more targeted and relevant solution that meets the unique needs of your clients, setting your offerings apart from your competitors’.
- Device and Processor Choice
Ensure that the partner you choose has a gateway solution that is device and processor-agnostic. This flexibility allows you to support a wide variety of devices for card-present payments and provides seamless compatibility across different hardware setups. Additionally, a strong white-label gateway should offer options like processor-agnostic tokens, ACH processing, app-based payments, and a range of plugins for additional features and functionality.
Additionally, make sure your partner offers a virtual terminal solution, critical for getting approvals and processing transactions when the customer provides payment data over the phone and through the mail and can support recurring payments.
- Payment Partner Support
A key benefit of a white-label gateway is the support provided by the payment partner’s integration team. Look for a company with an in-house team that provides support for options including semi-integrated payments and full compatibility with any point of sale operating system, including iOS, Android, and Windows. Additionally, partnering with a company that has a broad network of industry partners allows you to expand the range of solutions you offer.
New Year, Growing Business
There’s no better time to elevate your brand and grow your business by becoming a total POS and payments solution provider. With Datacap’s white-label payment gateway, you can seamlessly and securely integrate hardware and processor-agnostic payment solutions for any vertical or operating system. To learn more about how Datacap can help you grow your business, contact us.
