Card acquiring is the act of collecting payments with a credit card. Banks process these transactions to provide financial services. While making purchases in online or offline retailers by your credit card, payment information is first sent to a merchant’s acquiring bank. Only after approval payment is sent to your issuing bank to proceed with a transaction.
This article will serve as an overview of the basics behind acquiring. Credit card acquiring, also known as merchant acquiring, is the business of providing payment processing services to merchants. In other words, it’s how merchants process your credit card and debit card payments at their physical location or online store.
How Does Card Acquiring Work?
When a customer makes a purchase in your store or online, an acquiring bank processes the transaction. The customer’s data, such as card information, are sent to the customer’s respective card issuers via payment gateways provided by the card scheme network, like MasterCard or Visa. This action is also called interchange.
Your merchant account organizes the data and then forwards it to the customer’s issuing bank to verify the funds and make sure they are available. After verification, the issuing bank sends this information through another gateway connecting to payment networks.
What Is an Acquiring Bank?
Acquiring banks, also known as acquiring financial institutions, are financial institutions and payment processing companies that provide credit card transaction acquiring processing services to merchants and retailers. Among these networks are Visa, MasterCard, China UnionPay, American Express, and other companies. They are also called merchant acquirers. They usually provide you with services like accepting card payments and routing transactions over the payment networks.
Why Card Acquiring Considered an Essential Part of eCommerce?
Success in a retail or eCommerce business depends on many different factors, but one factor is how you handle your payments. If consumers are not able to pay for their purchases via their credit cards or debit cards because of your lack of expertise and knowledge, then you will lose profits.
The only way to avoid this situation is by having a relationship with a company that offers excellent credit card acquiring services. By using such services, you can easily accept payments from customers worldwide.
Why Is Local Card Acquiring Important for International Business?
Your business can benefit from local card acquiring services when you run an eCommerce store. It is because international businesses may have some problems accepting customer payments from different countries. So, it will be essential for them to have local card acquiring services.
Local card acquiring services are available everywhere and give access to global audiences. This can really help eCommerce businesses scale their profit margins while giving them an opportunity to accept international payments.
How Can Merchants Enjoy the Benefits of Local Card Acquiring?
The best way for merchants to enjoy the benefits of local card acquiring is to form a relationship with a company that offers this service. This will help them accept payments from customers worldwide, which is great for business.
That is why Solidgate company provides a single solution for local card acquiring across international markets. Using this service, clients benefit from the acquiring solution that offers multiple payment methods in one solid integration.
Using Fintech Solutions for Your Business
Modern fintech solutions offer services to small, medium, and large international businesses. Solidgate company provides a single solution for local card acquiring across international markets. This makes a payment journey simple so that merchants can constantly attract local customers who want to pay with credit or debit cards using not popular card acquiring services. By using leading technologies for any kind of business, you’ll receive flexible features:
- Global coverage
- Multiple payment methods
- Comprehensive security
- Fast and easy integration
- Fewer commissions and fees
The Bottom Line
Card acquiring is not just for big companies. It can also reach small businesses since providers are easy to find. The chosen payment gateway and processor meet the company’s needs and budget.
To accept payments from customers around the world, you will have to use a company that offers local card acquiring services. Another solution is to use a single service for local card acquiring across international markets, like Solidgate.
A solid relationship with an acquiring company can make you a successful merchant, especially for online businesses that sell all over the world. We understand merchants and know how to help them get a solid relationship with an acquirer bank.