Acquiring in English means acquisition. It is the acceptance of various payment cards for payment in the field of goods and services. In this case, the payment is made using an authorized acquiring bank by installing special payment terminals in companies.
What does acquiring mean?
Acquiring is a set of services for accepting bank cards for payment. For this, two types of payment terminals are used: POS terminals and imprinters. In turn, a credit institution that provides such services is called an acquiring bank. This bank installs special equipment for accepting cards and performs all settlement operations.
In order to use such a service as acquiring, it is necessary to conclude an appropriate agreement with the bank. It should reflect all the conditions for the installation of the device, its maintenance, the cost of the commission, as well as the terms for reimbursement of funds.
The terms of service are always formed individually for each individual trade organization by the bank itself.
Why do you need acquiring
Acquiring allows any trade organization to increase not only the number of clients, but also the turnover of funds, reduce the costs of collection, and reduce the risks of all operations related to the circulation of cash.
Banks receive a good percentage in the form of a commission, which is withdrawn to their account from each amount paid by the customer with the card at the point of sale. Its size is set by the bank individually for each company, as it may depend on various factors. For example, from the field of professional activity of the enterprise, from its average annual trade turnover, from the period, how long it has been on the market, from the number of company offices, from the size of the area occupied by a trade organization, from the type of communication channel and much more.
The acquiring bank pays the payment system a certain amount of the commission received.
Acquiring can be used by any merchant, regardless of the presence of a bank account. This will not be a prerequisite on the part of the bank at all. At the same time, if the company still does not have a bank account, then it will need to present a larger number of different documents that are necessary for the execution of the contract.
