What is a payment service and how does it work in Ukraine

The popularity of cashless payments is growing around the world. This trend did not bypass Ukraine either. Calculations without the introduction of physical means are gradually replacing traditional methods. Therefore, the business must be tailored to the needs of customers. This makes interaction more comfortable and productive. Payment systems help with this. Tranzzo is considered one of the most reliable. You can view the terms of connection here https://tranzzo.com/ru-ru.

Everything you need to know about payment systems

A payment system is a set of technologies and programs to ensure the transfer of funds from one account to another. That is, they are intermediaries between the buyer and seller during payments. They help transfer the necessary funds quickly and safely.

Unlike banking institutions, the payment system has more limited functionality. It does not issue cards, issue loans or open deposits. Like any financial institution, payment systems are certified according to PCI DSS standards. The most famous PSs in Ukraine are MasterCard and Visa.

The main advantage of such solutions is their speed. If the bank can process the payment up to 5 days, then the BC completes the transaction in a matter of minutes. They are used to pay for purchases in offline stores or on the Internet.

There are several types of payment systems in Ukraine:

1. Internal. They operate only on the territory of the country and are its residents.
2. International. Operate in several countries. Usually they work with several currencies and provide the ability to open different accounts.

Special mention should be made of virtual payment systems. They are also divided into banking and non-banking. The former are subject to the rules established for the subjects of the central banking structure. The latter are not subjects. They acquire legal significance after licensing. At the same time, the verification procedure for them has a simplified format.

PSs work with both individuals and legal entities. They can provide a fairly wide range of services:

1. Multi-currency transfers. Possibility of cooperation with suppliers and buyers from different countries. Instant transfers without filling out additional documents and details.
2. Invoices for payment. Formation of a request indicating all services or goods provided. After review, the recipient must agree on the transfer of funds.
3. Payments on the Internet. Convenient purchase of goods and services online. Subscriptions to your favorite apps and platforms. Conducted instantly, without leaving home.

Almost all providers work according to the same scheme:

• the user selects what action needs to be performed (transfer money, place an order on the Internet, crediting funds to a card or e-wallet);
• from the terminal this data is transmitted to the acquiring bank;
• the latter contacts the payment system, which in turn sends a request to the issuing bank;
• if there are enough funds in the account and the payment security check was successful, the bank sends approval for debiting to the processing center;
• from there the command is sent to the terminal to make the payment.

Despite the fact that the procedure is complex and multi-step, it only takes a few seconds. All data is processed automatically. They are transmitted in the form of a code, so they are protected from hacking and interception.

How payment services work in Ukraine

The activities of payment services are regulated by the National Bank of Ukraine. To control the work of the NBU, an oversight system has been developed. Currently, banking and non-banking payment systems are equally legal in the country. They operate in accordance with the norms of the Law “On Payment Systems and Fund Transfers in Ukraine”.

According to Resolution of the NBU Board No. 57, non-banking structures have the right to carry out activities after registration and receipt of the appropriate license. This rule applies to resident and non-resident companies.

Legal operation of non-bank payment services is possible subject to compliance with two basic standards. This includes verification and identification of clients, as well as the availability of personal data of the recipient and sender of funds.

Compliance with these rules is not necessary if the sender uses a personal bank card to complete the transaction. It allows you to identify the user automatically. If the client uses the PS to pay taxes or fines, verification is also not required. Small transfers up to 5000 UAH. also do not require the provision of personal data. But only on condition that they are not regular.

Tranzzo is one of the most reliable payment platforms in Ukraine. Offers many solutions that make doing business much easier and more efficient. The list of services includes Internet acquiring, software PPO, antifraud and many other products, without which it is difficult to imagine the existence of a modern business. Individual terms of use make Tranzzo a profitable and convenient platform for both small businesses and large companies.