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What Kind of Acquiring do I Need?

Boaz Gam

Boaz Gam

CEO

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8.07.2021
6 min
What is Acquiring? Types of Acquiring Offline acquiring Mobile acquiring Internet acquiring
How does Acquiring Work? Pros and Cons of Acquiring How to Choose an Acquiring Service Provider? What do you Need for Acquiring Integration into your Business? What do we Offer?

In 2021, bank cards have become the most popular means of payment in the world. It is getting harder to do business without acquiring, so in this article, we’re going to deal with the notion, find out how it works and what needs to be done to connect it.

What is Acquiring?

Acquiring is a banking service that allows customers to pay for goods and services with payment cards.

“According to international analytical companies, 54% of all purchases in 2020 were made in a non-cash form.”

Acquiring services are available to any type of business: organizations, individual entrepreneurs, and self-employed citizens. But acquiring is different, and which one suits your business depends on where you make payments: at a point of sale, online, in app or all of the above.

Types of Acquiring

Depending on the field of activity and the needs of a company, users can choose one of three types of acquiring:

  • offline;
  • internet;
  • mobile.

ATM acquiring (or exchange acquiring) is also distinguished. It denotes payment through self-service devices such as ATMs. This is an independent type of acquiring that is not required for most businesses.

Offline acquiring

Offline (trade) acquiring implies POS terminal installation at the point of sale. A POS terminal is a hardware system for processing card payments at retail locations, with the help of which the required amount is debited from the client's card or, conversely, the funds are refunded.

Mobile acquiring

This service is ideal for you if your activity involves active movement and the need to accept payments in different places (taxi, pizza delivery, or courier services). For mobile acquiring, compact mPOS terminals are used for card payments. They are easy to take with you. Such equipment can be easily controlled via mobile devices using an application. The principle of operation, in this case, is the same as for trading POS terminals.

“Mobile acquiring is the least secure method of accepting payments. In this regard, banks can limit the number of purchases via this type.”

Internet acquiring

This service of the bank provides a possibility to make payments for goods and services in online stores by card or e-money, using the systems of electronic payments. It is not necessary to purchase a real terminal.

Nowadays, online payments are totally secure. To protect Cardholders from fraud the possibility of a simplified cancellation (Chargeback) implemented into the online payment procedure. In many cases, the Cardholder can simply call his bank and tell that the goods have not been delivered or the service has not been provided properly.

3D Secure may require customers to complete an additional verification step with the card issuer when paying. Typically, you direct the customer to an authentication page on their bank’s website, and they enter a password associated with the card or a code sent to their phone.

How does Acquiring Work?

The acquiring system in its simplest form includes several participants:

  • an acquiring bank (provides acquiring);
  • a merchant (activates this service in the bank);
  • a customer (pays for goods/services using a card);
  • and issuing bank (issues bank cards used by customers).

The scheme of operation of this system is as follows:

  1. The customer pays for certain services or goods by card.
  2. Based on the card data, the issuing bank receives a request for the customer’s account status. His/her solvency and the absence of restrictions preventing the payment are checked.
  3. The requested amount is debited from the customer’s account.
  4. The acquiring bank charges a fee for this transaction and credits the money to the merchant.
  5. The merchant and the customer receive receipts with information about the purchase transaction.

In practice, the whole procedure takes a matter of seconds.

Pros and Cons of Acquiring

Acquiring simplifies business due to its undeniable advantages:

  • Saving time. Cashless payments are faster.
  • Reducing cash risks. The seller does not have to count cash and check banknotes for authenticity.
  • Increase in revenue. From a psychological point of view, it has been proven that it is easier for people to spend money when they pay by card.
  • Attraction of new clients. More and more people prefer cashless payments.
  • Geography expansion. Thanks to Internet acquiring, you can accept payments worldwide.
  • Free staff training. The acquiring bank or service provider usually trains employees for free, which makes them more professional and does not require investments from the merchant.

The disadvantages of cashless payments include:

  • Efficiency. There is always room for technical failures in the operation of programs and equipment. This can be inconvenient. But today it takes literally few minutes for banks and other providers to react and eliminate malfunctions.
  • Safety. Each participant of the cashless payment system runs the risk of becoming a victim of fraudulent activities. But thanks to modern protection mechanisms, such a risk is minimized.
  • Skill. A sales team needs to be trained to work with equipment.

How to Choose an Acquiring Service Provider?

Today, almost every banking organization offers acquiring among its services. But the fact is that not all banking organizations provide the same equipment and prescribe equal conditions. Thus, there are several criteria to be taken into account when picking a merchant acquirer:

  1. Find out what equipment options the bank offers, what is the cost of terminals, study their functionality.
  2. Read and study the acquiring agreement.
  3. Find out what fees the bank charges for processing each non-cash transaction.

“Important! The bank will take a certain percentage from each payment made through the terminal. In the case of trading acquiring, it varies from bank to bank and can be as high as 2.5%.”

  1. Clarify which payment systems are supported.
  2. Highlight your rights and obligations under the contract.
  3. Study the rates offered by the bank for settlement and cash services.

What do you Need for Acquiring Integration into your Business?

Before you start working with credit cards, you must open a current account to which sales revenue will be credited. Then:

  1. Fill out an application for acquiring for legal entities on the bank’s website.
  2. Wait for a call from a specialist in the acquiring department, specify the terms of services.
  3. Provide the missing information and papers, sign the contract.
  4. Get equipment for work (or a specialist will set up parameters on the site).

Generally, acquiring can be connected directly via the bank, but this is not always convenient and profitable. In such cases, you can contact a merchant service provider that will help connect acquiring in the necessary banks, offer additional options for managing and controlling traffic.

What do we Offer?

We are a platform that allows customers to quickly and easily get connected to bank acquiring. We provide a whole range of effective technical solutions for our clients, namely:

  • Fast integrations;
  • Support for e-commerce, m-commerce and alternative payment methods – clients can connect any wallets and payment systems, including regional ones;
  • Multi-currency support;
  • Recurring payments with flexible settings and management tools;
  • Financial monitoring tools for traffic management;
  • Customized payment form in a PCI DSS secured environment;
  • Cost-effective transaction flow;
  • Reconciliation with payment providers;
  • A full-featured mPOS solution with a state-of-the-art SDK and customization features, and more.

For a company, connecting bank acquiring means an increase in revenue and an influx of new customers. If you want to develop your business, it is important that both cash and non-cash payments are available at points of sale. We will be your safe and effective solution for setting well-functioning acquiring.

F.A.Q.

Is it possible to connect several types of acquiring?

Yes, you can connect several types of acquiring at once if you provide different kinds of services. For example, trading and mobile ones.

Is it possible to connect acquiring without a current account?

When activating the acquiring service, all payments received from customers’ cards must be credited somewhere. To do this, you need to open a current bank account. Thus, to arrange acquiring and cooperate with the bank without breaking the rules, you will need the current account.

Can I use acquiring without an online checkout?

It is possible only in a number of legislatively prescribed cases, including:

  • the sale of magazines and newspapers in paper form in specialized kiosks;
  • the sale of securities;
  • the provision of food for schoolchildren, students and teachers in educational institutions;
  • the sale of food and non-food products from carts, baskets, hands;
  • trade at fairs, exhibition centers, or markets;
  • seasonal trade in bulk.

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