CPSP, in the context of banking, most commonly refers to Collecting Payment Service Provider. This is a crucial role within online payment systems like iDEAL in the Netherlands.
CPSP: The Role of a Collecting Payment Service Provider
CPSPs act as intermediaries between businesses and banks in online transactions. Specifically, they handle the transfer of funds from the customer's bank (the Issuer) to the merchant's bank account. Think of them as the bridge ensuring businesses receive their iDEAL payments.
- Key Function: CPSPs receive iDEAL payments on behalf of businesses and then deposit these funds into the business's bank account.
- iDEAL Example: In the Netherlands, iDEAL Acquirers and CPSPs are contracting parties, enabling businesses to receive payments through the iDEAL system.
- YabandPay Example: YabandPay serves as a prominent example, acting as the official CPSP for iDEAL transactions in the Netherlands.
While the provided references mention other uses of the acronym CPSP (like in specialist property finance), the banking context centers primarily on its function within payment processing systems.
It's important to note the difference between CPSPs and Acquiring Institutions. While both are involved in payment processing, CPSPs are primarily focused on collecting payments, whereas Acquirers have a broader role in processing transactions.
