Eternity Law International News How does the acquiring work?

How does the acquiring work?

April 20, 2017

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.

You could be interested

Best Forex Brokers in South Africa for 2023

Introduction Navigating the intricate field of the foreign exchange (forex) market needs more than just trade understanding and trading skills. Selecting the right forex broker plays a pivotal role in shaping a trader’s success. As the year 2023 unfolds, South Africa stands as a vibrant hub for forex trading, hosting a spectrum of dealers eager...

Investment banking license in Labuan

Labuan is located east of Malaysia, south of the South China Sea and north of the north of Brunei Bay. It is part of the federal territory of Malaysia and consists of one large and six small islands. Labuan Investment Banking Business under the Labuan Financial Services and Securities Act 2010 (LFSSA) means: Provision of...

Open an account for a non-resident in Ukraine

In order for Ukraine to make the transition to the free movement of capital investment, the NBU allowed each entity to open an account in the Ukrainian financial market. Subjects include: non-resident legal entity; foreign funds specializing in investment; a company that manages assets acting on behalf of a foreign investment fund. Client account opening...

Legal regulation of operations with cryptocurrencies in Latin America

Regulation of operations with cryptocurrencies in Latin America has been popular for a long time. Three years ago, the report of the State Treasury showed an increase in such transactions in the amount of 510%. The most impressive growth was recorded in 2016 – $ 50 billion. The prospect of business development using digital money...

Ready-made company in Hong Kong

Shelf-firm is an organization that was registered for further sale. The procedure of purchasing a ready-made company is quite easy, usually you just need to do the ownership change and prepare relevant documents for this. Shelf-firms are registered already with a company name, but it can be changed after sale. Our company assists clients to...

Company Formation and Incorporation Options in Brazil in 2023

This jurisdiction is quite popular and has a reputation as a reliable commercial platform among foreign businesspersons. To register a business in Brazil is a rather laborious process in terms of accounting for and compliance with certain rules prescribed by the local regulator and set by government agencies. However, the establishment of enterprise in this...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7