How does the acquiring work?

Acquiring is the reception funds by the bank. The mechanism is the same for both debit and credit cards. Responsible for the procedure is the so-called processing company or the payment is done through a merchant account.

Processing company is a collection of servers owned by the organization and conducting transactions. Please note that the company must be licensed to provide such services.

A merchant account is a special identification number that is assigned to a company by a financial institution and is used to receive payments without full identification of the payer. In this case, the information about the card is enough.

The problem with merchant accounts is higher risk transactions because merchants do not provide an absolute identification of the client. Therefore, to reduce the risks somehow, organizations are advised to make the special check of the payments. There are special services, the so-called filters, which help to check the likelihood of fraud.

However, such security is not free for use, you will have to pay an additional fee, no matter whether the service is from the processing company or from a third-party service.

Any transaction conducted by the processing company is a subject to authorization in the world’s leading payment systems. Regulators conduct severe control over the implementation of financial institutions their own commitments. If there is a violation, suspension of transactions of some banks is possible.

Therefore, the transfer of funds to some countries or regions can be impossible.  You need to pay attention to this aspect when choosing the best financial institution to register the merchant.

The financial organization, in which the merchant was registered, receives the status of the acquirer. The bank transferring funds to the accounts of the acquiring gets the status of the Issuer. Merchants can be opened only in those financial institutions which have a license for the provision of such services. The process of passing the transaction is called clearing. It includes all inspections undertaken since the send and the receipt of funds.

If you wish to register your own merchant in the financial institution in any country of the world, the professionals of our company are always ready to help.