Your own Payment Processing Clearinghouse
Stages of creation
For a better understanding of the complexity of the issue, it makes sense to consider the basic steps of creating Payment Processing Clearinghouse in more detail:
1. Obtaining a processing license
As in the case with the creation of banks the situation with obtaining processing licenses deteriorated almost everywhere. Only average official component of the cost of the license in the classic offshore, as well as in Hong Kong, Cyprus, Israel is between 100 and 300 thousand dollars plus the cost of software up to 1000000 dollars. It is important to understand that the «official» component — is the smaller part of the actual costs. Unfortunately, experience shows that, in fact, for various reasons (corruption in commissions for financial control, inadequate legislation requiring to show turnovers even of non-existent so far businesses and other troubles), the real budget for this part is usually 3-5 times more.
Methods for providing consistent, transactional, and secure transmission of financial data at first glance are solely a matter of being in the field of information technology, which should be solved between the programmers. This is not the case. Unfortunately, different financial institutions use a wide range of internal standards. From basic VPN-connections with authorization to MySQL in the gateways of «black» processors, to the use of hardware encryption modules «RECALL» in large banks worth about 700,000 dollars. Thus, the lawyer leading the negotiations on the terms of cooperation should have a very good understanding of the cost and the technical details of the system integration that the «senior» counterparty offers.
2. Procurement of encryption modules