Leaving the apartment, any normal person always checked whether he had taken the keys and money with him. In the late 90s and early 00s, a mobile phone was added to this list. Now there has been one change. Instead of cash bills, many people take a plastic card with them for cashless payments. Therefore, such a word as acquiring appeared in the lexicon. It is this technology that makes it possible to use POS-terminals in stores.
Therefore, let’s figure out what acquiring means, how to connect it and what types are offered by banks to retail outlets. This service allows you not to lose customers who prefer to pay with cards.
What is acquiring
Translated from English, this word means “acquire, receive.” In simple words, acquiring means the process of non-cash payment for a purchase in any store. That is, the card is attached to the POS-terminal and money is debited from the payment instrument. If you visited a restaurant and paid for your order with a card through a terminal, then you took part in the acquiring process.
Apart from the buyer, acquiring participants are three parties:
- Outlet. A POS-terminal (point of sale, i.e., point of sale) is installed inside it, allowing you to accept non-cash payments
- Acquiring bank. This financial institution will install and configure the terminal. It will also provide the client with a current account (r / s), where funds from consumers will be received. For the services provided, the acquirer will receive a commission.
- Issuing bank. This is the financial institution of the buyer. It issues a card that the consumer uses for cashless payments
How acquiring works
Outwardly, everything is simple. The buyer applies the card to the terminal or inserts the payment instrument into the reader and the payment takes place.
Therefore, let’s talk about internal processes:
- After the card is attached to the POS terminal, the device sends information to the acquiring bank
- He redirects it to the payment system (MIR, Visa, MasterCard)
- Further, the data is sent to the issuing bank, which checks them
- After checking the card balance, the issuing bank returns the information to the payment system, which contacts the acquiring bank
- The financial institution gives an answer to the terminal, and the equipment prints a check. With the amount necessary for the purchase on the card, payment is made. The money goes to the account of the seller with the deduction of the commission for the service. If the required amount is not on the card, the terminal refuses to carry out the operation
There are the following types of acquiring:
The first type of acquiring is used offline. The main clients are service companies. To make a purchase, you need to bring a bank card (smart watch, smartphone) to the POS terminal to make a cashless transaction.
Online store owners use the second type of acquiring. The function of the POS-terminal is performed on the seller’s website by a payment form in which buyers indicate their card details. Payment data is transmitted to the financial institution.
For courier delivery, you can use a mobile device, mPOS terminal. The courier must have a smartphone with the application installed. It contacts the mobile terminal and the payment is made by reading the buyer’s money from the account and transferring it to the courier’s smartphone. In addition to couriers, taxi drivers, market traders and various mobile points can use mobile acquiring services.
ATM. This is payment for housing and communal services, television, the Internet, etc. This type of acquiring is not popular with the population, because the ATM takes a commission for the service. And why pay it if a similar operation without fees can be performed through online banking? Therefore, this type of acquiring is gradually dying out.
ATM means payment for various services (housing and communal services, mobile communications, the Internet) through self-service devices using bank cards.
Acquiring connection equipment
Let’s see how to connect acquiring. This will require different equipment.
Bank terminals print checks, but they are not considered fiscal documents. Therefore, along with the POS-terminal, you must have a cash register installed.
In classical trading, it must support auto-exchange with the bank terminal. Otherwise, the work of the cashier will increase, who will have to enter the same information into the terminal and the cashier.
When trading online, auto-exchange should be with:
- Form of payment
- Courier application, if there is a courier delivery
The best option is to order a cash register and acquiring in one bank. There will be fewer connection problems.
The last piece of equipment is a POS terminal. This product is needed to transfer data to the bank about making a payment. For merchant acquiring, this is a bank terminal; for Internet acquiring, it is a payment form.
Both products are provided by the acquiring bank or payment aggregator providing acquiring services.
You received information about the acquiring service, learned what it is, how it works and how such equipment allows you to accept non-cash payments.