Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Acquirer shopping experience:
1. Compare - without doubt the biggest advantage that the Acquirer offers shoppers today is the ability to compare thousands of Acquirer at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Acquirer? Wrong! If the Acquirer is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Acquirer then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Acquirer? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Acquirer and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Acquirer wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Acquirer then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Acquirer site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Acquirer, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Acquirer, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
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.
Examples:
See also
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.
Examples:
See also
