What Is Acquiring? Everything You Need to Know in Simple Terms

Article Content

Acquiring: what is it
Who uses Internet acquiring and why?
How the cost of acquiring is formed
Types of acquiring
Mechanism of acquiring operation
Advantages and disadvantages of acquiring
How to set up Internet acquiring
Criteria for choosing a payment service for acquiring
Acquiring for customers and merchants
Is it necessary to have a current account in the acquiring bank?
Popular Internet acquiring services in Ukraine
Summary and conclusions

A thick purse and a separate purse for coins - these accessories have long been a thing of the past. They have been replaced by cashless payments, without which people can no longer imagine a visit to the store and online shopping. However, not everyone knows what processes are behind the usual opportunity to pay with a bank card in the store. Meanwhile, a rather complex system called “acquiring” is responsible for this. Let's understand what acquiring is.

Acquiring: what it is

Acquiring is the process of accepting payment for services and goods by bank cards, via QR code and other non-cash methods. It implies interaction between the following organizations:

• merchant;
• the acquiring bank;
• the issuing bank that issued the card;
• the payment system - for example, Visa or Mastercard.

Definition and key characteristics of acquiring

So, acquiring is, in simple terms, accepting cards from different banks. The complex of services includes:

• Provision of a POS terminal/integration with an online platform for accepting payments.
• Processing of the buyer's card data.
• Payment authorization - to put it simply, the system should make sure that there is enough money on the card.
• Transfer of funds from the buyer's card to the seller's current account.
• Technical support + equipment service.

Who uses Internet acquiring and why?

Internet acquiring is becoming a type of acquisition. Internet acquiring is a solution for accepting online payments through online stores, websites, mobile applications, and other online platforms. Using internet acquiring, a business accepts payment from customers from different countries. The geography of sales expands; hence - the profit grows. Planning to launch or scale your online business? Then Internet acquisition is a significant tool to achieve the goal.

How the cost of acquiring is formed

The cost of acquiring consists of a list of components:

• Commission of the acquiring bank. This is the percentage charged by the bank for providing acquiring services for each transaction.
• Payment system fee, also expressed as a percentage of the transaction. Its value depends on the type of card - debit, credit, or premium.
• Other fees, e.g., connection fees, equipment maintenance fees, support fees, etc.

Types of acquiring

Let's consider the types of acquiring. Each is designed for certain purposes and used in specific conditions.

Merchant acquiring

Merchant acquiring is a classic option. Assumes the installation of a POS terminal in a store, restaurant, or beauty salon. The buyer, who decides to visit a physical point of sale to pay, puts the card to the payment terminal and enters the pin code. This is how payment through a cash register takes place - a process everyone is undoubtedly familiar with. The solution, which provides fast and secure payment acceptance, is suitable for stationary enterprises.

Internet acquiring

Let's consider what internet acquiring is. This type of acquiring allows you to accept online payments. The buyer enters his card data on the website or in an application. Secure payment goes through a secure gateway.

Many people ask, “Internet acquiring for an online store, how does it work”? Everything is simple and convenient:

• the buyer selects a product;
• adds it to the shopping cart;
• proceeds to payment;
• enters the card details, confirming the payment.

In online commerce, Internet acquiring is becoming the centerpiece.

Mobile acquiring

Mobile acquiring is aimed at accepting payments via smartphones and tablets and a miniature device - an mPOS terminal. The latter is connected to the gadget via Bluetooth: you can pay with your card anywhere there is internet access. So, online acquiring is an option for couriers, cab drivers, craftsmen working in the field, and other mobile professionals.

ATM acquiring

This type of acquiring allows you to withdraw cash and make other transactions with your bank card through ATMs. Ground acquiring is the most familiar option for most people.

QR-acquiring

This is the way of accepting payments by means of a QR code. The buyer scans a QR code using the camera of his smartphone. The payment of the purchase is made through the mobile application of the bank. Contactless QR-acquiring has become a convenient alternative to classical payment options.

The mechanism of acquiring operation

So, Internet acquiring how does it work? The process at first glance is complicated, but it is possible to understand the main stages. Let's familiarize ourselves in more detail with the algorithm of acquiring payments.

The process of payment through acquiring

Initially, the buyer presents a bank card for payment at a POS terminal. Alternatively, he enters the card details on the website.

1. The bank card details are transmitted to the acquiring bank.
2. The acquiring bank sends a query to the payment system (e.g., Visa, Mastercard). 4.
3. The payment system sends the query to the issuing bank that issued the card.
4. The issuing bank checks whether there are enough funds on the card to make the payment. In case of a positive result, the payment is authorized.
5. The authorization goes through confirmation, returning through the chain discussed above to the acquiring bank and the merchant.
6. Funds are debited from the buyer's card and credited to the seller's current account - this is how acquiring works.

Commissions and fees for acquiring

Earlier we mentioned the commissions and fees charged for acquiring. Their size depends on the acquiring bank, payment system, company turnover and other factors. The buyer should scrupulously study the terms of the contract, preferring the most favorable offer.

Advantages and disadvantages of acquiring

Let's consider the advantages of acquiring:

• Increase in sales - acquiring is convenient for the customer.
• Growth of the target audience that prefers cashless payment.
• Reduction of risks associated with theft/counterfeiting of cash.
• Simplification of reporting.
• Working for the image of the company.

However, acquiring has some disadvantages:

• Commissions, usage fees.
• Mandatory integration with payment system/need to purchase equipment.
• Binding to an internet connection.

How to set up Internet acquiring

Planning to accept online payments? There are two basic ways to set up Internet acquiring.

Connection through the bank, which means going directly to a branch and signing an Internet acquiring agreement. Bank staff will advise and provide instructions on how to integrate with your website/platform.

Connecting through a payment service is a simpler option. Payment aggregators take care of technical issues, providing the client with ready-made solutions for integration with the website. For detailed familiarization with this option, we recommend you study the Acquiring Module, evaluating its advantages.

Criteria for choosing a payment service for acquiring

An important step for successful online trading is choosing the right payment service. We advise you to consider the following criteria.

The size of commissions and fees

Choose the most favorable tariff for your business by comparing the offers of different services.

Timing and convenience of connection

Much depends on the complexity of interactive processes. It is also recommended to find out how long it takes to connect.

Available payment methods

The service should support the payment methods you need: bank cards, e-wallets, etc.

Speed of receipt of funds to the account

Find out how long it takes for funds to be credited to your account after payment. Preferably, the waiting period should be short.

Additional options for business

Pay attention to the availability of additional features. These include invoicing, analytics, automatic payments, etc. Advanced features can be beneficial for your business.

Quality of customer support

Newbies often have questions. It is good when a service provides its customers with prompt customer support.

Transparency of terms and conditions

Don't be lazy to read the contract. It is recommended to make sure that all terms and conditions are transparent and should be clear to you. Otherwise, you should reconsider your choice or ask for additional consulting assistance.

Convenience of the interface

It is worth mentioning the importance of an interface that is intuitive and logically structured - it should be easy to use.

Acquiring for customers and merchants

Acquiring benefits customers and merchants equally. Customers can pay for their purchases comfortably without worrying about security. For merchants, it simplifies accounting, helps to increase sales and attract new customers. The question arises: “Merchant acquiring what is it?”. This is the acceptance of non-cash payments from the client in favor of the merchant - a particular seller. The buyer pays for the goods with a bank card or other electronic means.

An example of using merchant acquiring in Ukraine

Online store Rozetka

One of the largest online retailers in Ukraine, Rozetka, uses merchant acquiring to accept cashless payments.

How does it work?

1. The buyer selects a product on the Rozetka website and adds it to the cart.
2. When placing an order, he chooses the payment method - bank card.
3. The system redirects him to the payment gateway LiqPay (PrivatBank) or Fondy - payment systems integrated with Rozetka.
4. The buyer enters the card details and confirms the payment (for example, via 3D Secure or bank app).
5. The acquiring bank (e.g., PrivatBank) checks the availability of funds and confirms the transaction.
6. The funds are debited from the buyer's card and transferred to the merchant's (Rozetka) current account minus the acquiring bank's commission.
7. Rozetka receives notification of successful payment and starts the process of delivery of goods.

Advantages of acquiring for Rozetka

• Fast payment processing - customers do not need to go to a bank or terminal, everything happens online.
• Increased security - modern data protection protocols are used.
• Wide choice of payment methods - support for Visa, MasterCard, Apple Pay, Google Pay.
• Accelerated turnover of funds - payments are credited to the company's account within 1–2 days.

Conclusion: Rozetka, as a merchant, uses Internet acquiring to accept payments, providing convenience to customers and automating sales.

If you want to implement the same acquiring - leave an application for connection of acquiring to the online store to our SoloMono specialists. Advantages of acquiring for Rozetka.

Is it necessary to have a current account with the acquiring bank?

Important: In order to connect acquiring, you will need a current account in the bank providing the acquiring service. Alternatively, you can open an account with a partner bank of the payment system.

Popular Internet-acquiring services in Ukraine

Online commerce in Ukraine is breaking all records. Therefore, it is important for businesses to accept non-cash payments. Imagine the unfortunate loss of customers just because of the lack of a convenient payment method!

In Ukraine, there is a list of payment services offering Internet acquiring. This is a solution that allows businesses to easily and safely accept online payments. Let's take a look at the most popular options.

Fondy

Fondy offers a range of solutions for entrepreneurs, including a grandiose range of payment methods. It includes bank cards, e-wallets, Apple Pay, and Google Pay. Fondy can be comfortably integrated with various platforms, quickly merging the service with your website or mobile app.

Benefits:

• Variable payment methods.
• Easy integration.
• Advanced analytics, reporting.
• PCI DSS security compliance.
• 24/7 customer support.

If, for example, you run an online clothing store, then after connecting Fondy, you will expand the list of payment methods for customers. For example, it becomes easy to pay for the purchase through Apple Pay - this option is chosen by iPhone users. Detailed analytics will allow you to analyze popular payment methods, building your sales strategy in accordance with this data.

LiqPay

LiqPay is a payment service from PrivatBank. It should be reminded that the latter is the largest Ukrainian bank. The stability of LiqPay is explained by its integration with the banking infrastructure.

For example, most of your customers use the services of PrivatBank. Then the connection of LiqPay becomes quite a justified decision. Customers with an account in Privat24 pay for purchases in one click. The process of order placement is simplified.

Interkassa

Interkassa is a payment service of international level. It supports a list of various currencies and payment methods. The choice will be justified if you plan to enter the international market.

For example, you are the owner of an online school offering English language courses. Interkassa will allow you to accept payments from students from different countries. Your clients will be able to use familiar payment methods - for example, PayPal and local e-wallets.

EasyPay

EasyPay service is focused on accepting payments for utilities, mobile top-ups and other everyday services. EasyPay will be a reasonable solution if you have a business related to the provision of such services.

Let's imagine that you are an Internet provider. With EasyPay, customers will quickly pay for the Internet via your website, application or payment terminal.

Summary and conclusions

We have looked at what acquiring is in simple terms. It is a good investment in your business, allowing you to attract more customers, increasing their loyalty. The consequence is the desired increase in sales.

To succeed in online commerce, focus on choosing the right acquiring service. Don't be afraid to experiment, adjusting to changing market demands. Remember that the secret of success is steady development and readiness for new challenges!