If you are a large merchant processing large volumes of online transactions, you might consider building your own payment API as opposed to relying on third-party solutions. Your own payment API might take a lot of work to build, but it might be worth it in the long run if you are processing big enough transaction volumes. Building a custom payment API enables you to customize it to suit your business. 

Payment API Development Process

The development process requires a lot of time and can even take longer than a year. You need to establish a relationship with a financial institution where funds will be received and stored. 

There is also a need to decide on a hosting solution for the payment API. Self-hosting is much more expensive because the data center has to be maintained in-house. Going with a reliable third party solution provider such as Amazon Web Services might be more prudent. An in-house data center, though, offers more control.

The development process might take a few months and cost anywhere between $25000 and $35000. Afterwards, there is a long and methodical process of getting certification. A PCI audit is normally due before being allowed to process card payments. These audits are recurring to give assurance of your organization’s data security measures. 

Tokenization and Certification

If you are building your own server solution, you will also need to implement tokenization for the security of customer data. Tokenization is the replacement of customers’ card numbers with tokens that are less prone to fraud. This further adds to the development time and costs. 

Once your security standards are in place, you can apply for an EMV certificate from EMVCo. EMV is an international standard and you’ll need the certificate to process payments from Visa, MasterCard, or any other card that has a chip. 

To learn more about what it takes to build a payment API, get in touch with NS804. We are an app development company helping clients bring their app ideas to life.