Payment Processing Solutions

While working on our web-app, we’ve been looking for a payment solution. From what I’ve gathered, there are middleman type solutions (such as Amazon Flexible Payments Service) and gateway type solutions like Authorize.net. It sounds like middleman-style services are easier to integrate and a better cost-wise at the start for a low volume of transactions, and it is always easy to gateway-style services later on. We are also using Satchmo, which has some integration with Paypal and Authorize.net.

Gateway Solutions:

  • Advantages
    • Integration with Satchmo
    • Receive funds more quickly through merchant accounts
    • Can figure out best pricing through different merchant accounts
  • Disadvantages
    • Need SSL certificate
    • PCI Compliance (for recurring payments)
    • Reliability issues (have heard about problems with Authorize.net)

Middleman Solutions:

  • Advantages
    • Easier handling of all sorts of credit cards
    • Offload security issues for storing credit card numbers
    • Better developer API support(e.g Amazon FPS and Paypal)
  • Disadvantages
    • Not purely integrated into website(but co-branding is available)
    • Fees are not negotiable, may be higher for high volume

We’re leaning towards the latter. Anybody have any experience with other solutions or have any recommendations they can offer ?