Acquiring is used not only in online stores when paying for purchases with bank cards, but also in restaurants, supermarkets, pharmacies, etc. But what is this technology?
Acquiring is an economic term that means payment for services, works and goods using a bank card and a special terminal without using cash. The word is of English origin, and literally translated it means "acquisition."
The method has its advantages both for the organization and for the client: the organization saves on cash collection and eliminates the risk of receiving counterfeit banknotes, and the client, in addition to the speed of settlement, no longer worries that the seller will make a mistake with the change.
What is acquiring?
In a broad sense, acquiring is a banking service, for which the organization must conclude an agreement with the acquiring bank, after which the employees of this bank will install special equipment on the territory of the organization. Such equipment, most often, refers to ATMs, pin-pads or payment terminals.
Acquiring is divided into three types:
- shopping, when the calculation is carried out directly in shops, restaurants, fitness clubs, hotels, etc.;
- Internet acquiring, in which purchases are made on the Internet using a special interface;
- ATM acquiring are ATMs and terminals that make it possible to withdraw or deposit cash into an account.
Since acquiring is an agreement between the merchant organization and the bank, each party has its own obligations. The organization should:
- provide a place on its territory for the installation of bank equipment;
- accept bank cards for settlements with clients;
- pay the bank the commission set by the agreement.
And the obligations of the acquiring bank include:
- installation of terminals or other necessary equipment on the territory of the organization;
- training of employees of the organization in servicing payment cards;
- ensuring that the funds on the client's card are checked so that they are sufficient at the time of purchase;
- reimbursement of the amount paid by the card to the organization within the established time frame;
- provision of consumables;
- providing technical advice in case of difficulties with equipment or card calculations.
Who needs acquiring and why?
First of all, acquiring is necessary and useful for organizations supplying goods and services. This method of calculation affects the company's image and the desirability of purchases, affects customer acquisition and minimizes risks:
- The image of the organization is improving, because when using acquiring, the company looks more prestigious in the eyes of clients. And besides, it is more convenient to pay with cards, therefore the number of potential buyers is also increasing. And according to statistics, people spend more money in cashless payments.
- Acquiring is most convenient for wealthy segments of the population, which means that its use increases the possibility of increasing wealthy clients and clients of a strong middle class.
- Acquiring completely eliminates the risk of receiving counterfeit money, saves enterprise funds due to the absence of the need for cash collection, while banks provide organizations with benefits: discount programs, discounts, etc.
The banks themselves need acquiring, since it significantly expands their capabilities by attracting additional funds and increases the number of regular customers.
In fact, by the way, banks are not the direct owners of payment systems and represent them only formally in contracts. All information about acquiring, as well as responsibility for the technical side of the issue, is owned by such global brands as Visa, UnionPay, MasterCard, American Express, etc. And banks transfer some of the commission to the accounts of payment systems.
Acquiring is also needed for buyers, since commissions are not charged from them when calculating, and you can not carry large amounts with you.
Merchant acquiring
The technology of merchant acquiring is carried out using a special device - a POS terminal, which is in constant communication with the bank and the payment system online. And all trading operations take place in three stages:
- the client inserts a bank card into the terminal's reader, and if the contactless PayPass technology is used, he simply brings it to him;
- data is read from the magnetic stripe or chip of the card, the solvency is checked immediately and a request is made to the bank for permission to withdraw funds;
- after the completion of the transaction, the buyer is issued a check with all the information about the transaction.
As a backup tool in case of problems with the POS-terminal, organizations can use an imprinter - a device with which the cashier makes an imprint of the card on a special receipt, where the customer's data is entered. And before that, he needs to call the bank to check the card and get permission for the operation.
And crediting money to the organization's account when using merchant acquiring is as follows:
- at the end of the working day, the company sends to the bank data on the transactions performed using bank cards;
- the bank processes this data, deducts the commission due under the contract and sends the funds to the organization's account;
- the term of the transfer is determined by the contract, but usually does not exceed 1-2 days.
To connect merchant acquiring, you need to choose an acquiring bank, specify the list of necessary documents there, collect them by the day of the conclusion of the contract. And after its registration, which takes from 1 to 4 weeks, the company will be assigned a number that will be linked to its account. And as soon as all legal issues are resolved, the bank will install the equipment, test it and train the employees of the client company.
Internet acquiring
In the case of Internet acquiring, a service provider works with the company, which ensures the security of operations and is responsible for their fund monitoring. The operations themselves are carried out according to the following scheme:
- a person chooses to pay by card in an online store, they are redirected to the provider's authorization page, where they need to enter payment details;
- after that, the provider makes a request and redirects the buyer to the bank's page;
- authentication takes place on the page, the provider's request is sent to the international payment system, from where a response comes about approving or refusing to pay;
- the provider sends this response to the online store and the buyer;
- if the operation is allowed, the online store sells the goods and cancels the order, the clearing file goes to the settlement bank, which transfers the reimbursement for the operation to the account of the online store.
And providers offer a wide range of services in the field of Internet acquiring.
How to connect internet acquiring?
The connection begins with checking that the online store complies with the requirements of international payment systems. And as soon as the compliance is achieved, you need to introduce those interface elements that will be responsible for the calculations.
After that, you will need to prepare a section with a public offer, which describes the conditions and circumstances of the refund to the buyer. And the final step is made by the icons of the payment systems used.
Once all this is done, you need to wait until the security check of the financial institution passes. And usually this process is purely formal. And all organizational issues are taken over by the service provider.
