Internet acquiring is a service of accepting online payments on behalf of a web-merchant with the use of bank cards or internet banking. Usually, Internet acquiring assumes accepting cards of Visa, MasterCard and Prostir payment systems and the Privat24 console.
The participants of the process are: acquirer bank, issuing bank, card or account holder, payment system, service provider.
Acquirer bank is the bank ensuring the clearance between the bank issuing the card and the Internet merchant in the payment system network. The Internet merchant’s current account may be open with an acquirer bank as well as with any other bank in the country. At the same time, the acquirer bank guarantees the transfer of funds to the current account of the merchant or service provider irrespective of the bank it is opened with.
The issuing bank is the bank that issued the payer’s card and opened the account of the card. In the event the positive answer to the purchase is received from the acquirer bank, the issuing bank guarantees the withdrawal of funds from the card account and transfer of them to the payment system to reimburse the acquirer bank.
A service provider is the web service that integrates the website of the internet merchant with the acquirer bank. For example, FONDY payment platform is a service provider that ensures the integration of more than 2500 web merchants with 25 banks in Ukraine, Europe, and Russia. The main functions of a service provider:
- simplification of web merchant interaction with acquirer banks via its own web-API
- possibility of branding payment pages according to its own website design
- ensuring the security of payments with #D Secure technology, anti-fraud system and PCI DSS standards
- aggregation of cash flows from various payment methods and disbursement to the merchant’s current account
- ensuring the interaction with various acquirer banks under a single contract
- provision of detailed reports and acts corresponding to the payments made
- facilitation of payments conversion due to routing to various banks in the event of rejection or unavailability of one of them
- convenient merchant control panel with detailed analytics