Information about Acquirer
An acquirer is a member of MasterCard and/or Visa which maintains merchant relationships and receives all bankcard transactions from the merchant.
Acquirers charge the merchants fees which include: a monthly rent for the EFTPOS terminal (if it is not owned by the merchant) which is usually equivalent to around 10 to 30 USD monthly, a percentage fee on their transactions (which varies from country to country, for example in Poland it ranges from 1.8% to 2.5%, regardless of whether the card is debit or credit, in USA and many Western Europe countries the fee is often much lower for debit card transactions, than for those with credit cards), and sometimes--especially in the countries where fees for debit card transactions are much lower--an additional fixed fee per transaction, which ranges from 10 to 20 cents).
In the USA, Visa/MasterCard acquires, and therefore merchants, usually pay much less for a successfully swiped credit card than for a hand-keyed transaction (where the card is not present). Debit transaction costs are usually just a flat rate (usually $.60 to $1.10 USD each) when the PIN is entered by the cardholder. Merchants terminal requires a PIN-pad for this PIN entry. Often the PINpad is a separate device connected to the terminal, other times the PINpad is integrated in the machine.
When a debit card is swiped, but the PIN is not entered, the acquirer usually charges a rate comparable to the swiped credit card rate or less. Since Visa/MC charges acquires less for non-PIN debit cards, many acquirers charge less to the merchant. Typical rates are usually (appx.) 1.3% to 1.9% for non-PIN debits (offline Debit rate) and often 1.6% to 1.9% for credit card swipes.
These swiped transactions are usually referred to as Qualified transactions. It is important to note that many Rewards-type Visa/MC cards, even when swiped, will fall into the Mid-Qualified or even the Non-Qualified category.
Handkeyed transactions usually have a much higher rate, often 2.3% to 2.8% for these transactions. Many processors will charge the lower rate on all transactions on their monthly merchant statements, then show the "add on" for the handkeyed and other more costly transactions. Often this 'add on' is 1-1.3%. These transactions are often referred to as Mid-Qualified.
The highest rate (Non-Qualified transactions) is for corporate cards, foreign cards, downgraded transactions (when the merchant does not meet all of the requirements), and higher-level Rewards-type cards. This Non-Qual rate is typically at least 3.0%, and sometimes as high as 5.0%
The Visa/MasterCard Acquirer is the entity that is contacted for each authorization request, and then the entity that provides the approval or decline of the credit card. Processing networks are utilized for these communications, usually behind the scenes, called front-end processing networks. The back-end processor is the one that actually settles the funds into the merchant's bank account, and then prints the monthly merchant statement.
Whether a "swipe" terminal is used, or a POS device, or even an internet payment gateway (i.e. Authorize.Net, BluePay 2.0), it is the acquirer that approves and settles the transactions.
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction.
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Acquirers charge the merchants fees which include: a monthly rent for the EFTPOS terminal (if it is not owned by the merchant) which is usually equivalent to around 10 to 30 USD monthly, a percentage fee on their transactions (which varies from country to country, for example in Poland it ranges from 1.8% to 2.5%, regardless of whether the card is debit or credit, in USA and many Western Europe countries the fee is often much lower for debit card transactions, than for those with credit cards), and sometimes--especially in the countries where fees for debit card transactions are much lower--an additional fixed fee per transaction, which ranges from 10 to 20 cents).
In the USA, Visa/MasterCard acquires, and therefore merchants, usually pay much less for a successfully swiped credit card than for a hand-keyed transaction (where the card is not present). Debit transaction costs are usually just a flat rate (usually $.60 to $1.10 USD each) when the PIN is entered by the cardholder. Merchants terminal requires a PIN-pad for this PIN entry. Often the PINpad is a separate device connected to the terminal, other times the PINpad is integrated in the machine.
When a debit card is swiped, but the PIN is not entered, the acquirer usually charges a rate comparable to the swiped credit card rate or less. Since Visa/MC charges acquires less for non-PIN debit cards, many acquirers charge less to the merchant. Typical rates are usually (appx.) 1.3% to 1.9% for non-PIN debits (offline Debit rate) and often 1.6% to 1.9% for credit card swipes.
These swiped transactions are usually referred to as Qualified transactions. It is important to note that many Rewards-type Visa/MC cards, even when swiped, will fall into the Mid-Qualified or even the Non-Qualified category.
Handkeyed transactions usually have a much higher rate, often 2.3% to 2.8% for these transactions. Many processors will charge the lower rate on all transactions on their monthly merchant statements, then show the "add on" for the handkeyed and other more costly transactions. Often this 'add on' is 1-1.3%. These transactions are often referred to as Mid-Qualified.
The highest rate (Non-Qualified transactions) is for corporate cards, foreign cards, downgraded transactions (when the merchant does not meet all of the requirements), and higher-level Rewards-type cards. This Non-Qual rate is typically at least 3.0%, and sometimes as high as 5.0%
The Visa/MasterCard Acquirer is the entity that is contacted for each authorization request, and then the entity that provides the approval or decline of the credit card. Processing networks are utilized for these communications, usually behind the scenes, called front-end processing networks. The back-end processor is the one that actually settles the funds into the merchant's bank account, and then prints the monthly merchant statement.
Whether a "swipe" terminal is used, or a POS device, or even an internet payment gateway (i.e. Authorize.Net, BluePay 2.0), it is the acquirer that approves and settles the transactions.
Examples:
- Bank of America
- Chase-Paymentech
- Royal Bank of Scotland
- Wells Fargo
See also
This article may be too long.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
This article may be too long.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction.
..... Click the link for more information.
This article may be too long.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Bank of America Corporation
Public (NYSE: BAC TYO: 8648 )
Founded (as "Bank of Italy") San Francisco, CA (1928)
(acquiring banks)
Charlotte, NC (1874)
Boston, MA (1784)
Headquarters Charlotte, North Carolina, U.S.
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Public (NYSE: BAC TYO: 8648 )
Founded (as "Bank of Italy") San Francisco, CA (1928)
(acquiring banks)
Charlotte, NC (1874)
Boston, MA (1784)
Headquarters Charlotte, North Carolina, U.S.
..... Click the link for more information.
The Royal Bank of Scotland Plc
Banca Rìoghail na h-Alba
Public1
Founded 1727
Headquarters Edinburgh, Scotland, UK
Industry Finance and Insurance
Products Financial Services
Employees 22,000
Parent Royal Bank of Scotland Group
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Banca Rìoghail na h-Alba
Public1
Founded 1727
Headquarters Edinburgh, Scotland, UK
Industry Finance and Insurance
Products Financial Services
Employees 22,000
Parent Royal Bank of Scotland Group
..... Click the link for more information.
Wells Fargo & Co.
Public (NYSE: WFC )
Founded New York, New York, USA (March 18, 1852)
Headquarters 420 Montgomery, San Francisco, California, USA
Key people Richard Kovacevich, Chairman
John Stumpf, President and CEO
..... Click the link for more information.
Public (NYSE: WFC )
Founded New York, New York, USA (March 18, 1852)
Headquarters 420 Montgomery, San Francisco, California, USA
Key people Richard Kovacevich, Chairman
John Stumpf, President and CEO
..... Click the link for more information.
Issuer - A legal entity that develops, registers and sells securities for the purpose of financing its operations. Issuers may be domestic or foreign governments, corporations or investment trusts.
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Merchants function as professionals who deal with trade, dealing in commodities that they do not produce themselves, in order to produce profit.
Merchants can be of two types:
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Merchants can be of two types:
- A wholesale merchant operates in the chain between producer and retail merchant.
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This article may be too long.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
Please discuss this issue on the talk page and help summarize or split the content into subarticles of an article series.
A debit card is a plastic card which provides an alternative payment method to cash when making purchases.
..... Click the link for more information.
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