Acquiring an online store: what it is and how it works
Acquiring technology allows you to pay for goods and services with bank cards. For example, we use developing services when we deliver in a supermarket through a POS terminal. This article will tell you what acquiring is, how it works and what payment services exist.
What is Internet acquiring
Online payment is an essential function of an online store, without which it is impossible to provide quality customer service. To accept online payments, an entrepreneur must connect to Internet acquiring. In this case, the role of the terminal is performed by the web interface, which is provided by payment services.
Payment services greatly simplify the connection of online payment in online stores. The seller does not need to communicate directly with banks because the service is an intermediary between him and financial institutions. At the same time, the requirements for merchants on the part of payment services are noticeably lower than if you connect acquiring directly through a bank.
How acquiring works
First, let's talk about the parties that are involved in the transfer of money and figure out what they are called:
The issuing bank that issued the buyer's payment card;
Acquiring a bank that accepts payment;
Payment system through which the transfer is made;
Payment service that provides the acquiring service.
The payment service establishes interaction between all parties of the process, significantly reducing the involvement of the buyer and seller in it.
The buyer enters his bank card details and pays for the order.
The payment service processes and submits a request for debiting funds to the appropriate issuing bank.
The issuing bank checks the operability of the card and the availability of funds on it to confirm the transfer.
If the buyer has additional protection enabled, then he needs to confirm the transfer through a code in SMS or a banking application.
The payment is made through a payment system, such as Visa or Mastercard, and goes to the acquiring bank.
The acquiring bank processes the information received and decided whether to accept or reject the transfer.
After accepting the payment, the money is credited to the seller's account - this can be an account in the acquiring bank or the payment service, where the seller will transfer the money to himself.
The seller pays a monthly fee for using the terminal and a commission on transfers for regular acquiring services. There is no terminal in Internet acquiring, so only the commission remains. It is divided between the acquiring bank, the issuing bank, the payment system, and the service that provides the acquiring. Usually, the commission is 2-2.7%, but sometimes, depending on the working conditions, the percentage depends on the store's turnover—for example, the higher the turnover, the lower the commission.
Every online store should use the acquiring service because it depends on the ability to pay for orders online. Connecting the Internet acquiring to your site is quite simple if the platform has ready-made integrations with payment services.