What is Internet acquiring and how fast can the service be connected to the site or the mobile application of a store?
What is internet acquiring and how to get connected?
The increasing payments with the bank cards are gradually replacing cash payments. The stage of mistrust to the trendy plastic mean of payment has passed, and now even the older generation is using it calmly and without any problems. The business reacts to this trend by acquiring payment terminals and starting conducting transactions online. A service that allows you to accept payments online is called Internet acquiring.
This technology makes it possible to pay for the purchases of goods in online stores or to pay for services with a bank card. In order to use Internet acquiring service, a company should have a legal status, a bank account and to conclude an agreement with an acquiring service provider (i.e. to create a merchant account).
Acquiring: advantages, types and algorithm of a service connection
Acquiring is getting more popular due to its numerous advantages.
- Convenience. Card payment is convenient for both: the buyer and the seller. There is no need to count and give change; no need to store bills and coins and secure them. The payment procedure is faster and in terms of an offline point it saves time at the cash-desk.
- Average bill increase. A modern client rarely has a lot of cash in the pocket. Of course, conservative people still do that, but their number is decreasing every month. Usually a person carries some cash as a pocket money that is not intended for large purchases. When paying with a card, the buyer does not limit himself/ herself and thus spends more.
- Protection against fake bills. No matter how well the cashiers are trained, any shop periodically gets paid with fake money. Payments with bank cards eliminate this risk.
- Lack of human influence. Automatic clearance helps to avoid shortages due to errors of the employees. The sources of money loss can be, e.g. incorrectly calculated amount received from the buyer, as well as the errors in change. In the case of using acquiring, everything is calculated by a program that cannot make mistakes of that kind.
Acquiring service appeared as a result of the demands of present-day consumers. There are people who do not carry cash around at all. If such a person enters your shop and finds out you have no payment terminal, he or she will turn away and bring the money to your competitor. Accepting electronic payments is a way to significantly expand the customer base, since the culture of online payments is growing every year.
There are three types of acquiring: merchant, mobile and Internet acquiring.
This is a classic example of any payment operation using a POS-terminal. Such a service was the first to appear and it still does not lose its relevance. Funds come to the bank account of the seller already reduced by the amount of a service fee.
You can pay for goods and services not only with a plastic card, but also with a mobile device with an electronic NFC chip.
This system is less common in Ukraine. In this case, the POS-terminal is connected to the cell phone. Software that allows conducting financial transactions is installed in the smartphone.
This option is convenient for companies with a lot of field work when they want and need to settle the payment right on the spot. The application automatically charges the seller for the use of the service.
This is mostly used by online stores. Settlement is made through a secure payment page. The buyer enters the card details, which are transferred to the issuing bank. If the entered information is correct, the money is transferred to the seller reduced of a service fee for the operation.
The service fee is charged by the bank and the service provider, namely by a processing company that carries out the transfer. And service provider bears responsibility for protecting the funds on a bank card, as well as for personal information of the buyer.
The participants of the Internet acquiring process
In order for the process of transferring funds for services or goods to proceed quickly, successfully and safely, there are several parties that take part in the transaction process.
- The customer. The one who pays for a product or a service.
- The issuing bank. It issues plastic cards and opens the account of the card. The issuer’s responsibility is the accuracy of settlements when conducting money transfer using a bank card.
- The merchant. The one who sells the product or provides a service (on the site, in the application, at the point of sale).
- The acquirer bank. Provides the merchant (the seller) with payment tools and equipment (e.g. POS-terminal), opens a current account in his/her name and credits funds from the customers.
If the acquiring process is integrated correctly, the payment transaction takes several seconds. Moreover, the operation is protected from both sides: the seller, a.k.a. merchant, and the buyer, a.k.a. customer.
How to integrate acquiring
- It all begins with choosing a processing company that provides the Internet acquiring service. For example, you chose Portmone.com.
- Having decided upon a service provider, the client fills out an application form via the internet site.
- The next step is collection and submission of the documents. This step should be done only after agreeing upon all the details with a potential partner, given that the list of documents may differ depending on the type and features of your business.
- If the processing company gives the green light, the parties sign a contract. The contract should contain information on the details of cooperation and service fee amount (depending on the type of business), as well as on the algorithm for resolving disputes, should they appear.
- Then, the client selects the connection options (API, ready-made CMS-modules or SDK for iOs and Android applications). Or in the case of merchant acquiring – the client selects equipment for payment transactions. Then the partner must configure it and teach the customer how to use it.
That’s all. After that, test payments are made. If everything is in order, the client begins to use the technology in his/her business in the full amount.
How to safely, securely, and timely order the acquiring service from Portmone.com?
Do you think that configuring acquiring is a long and dreary procedure? You are mistaken.
With Portmone.com this is fast and easy thing to do. You just need to register, set up your personal account, and then you already can accept payments!
First and foremost Portmone.com service is all about safe and timely transactions.
Advantages of our service:
- the possibility to block funds on the client’s account for up to 7 days;
- the possibility to invoice via mobile phone or email;
- the possibility to issue up to 100 invoices at a time;
- the client manages its automatic payments the way he or she deems it necessary;
- the client enters his/her card data once, afterwards he/she enters only CVV.
It is pleasing and comfortable for the customer to work with a company that allows him/her to pay in a way he/she wants. Customers trust such sellers more and stay with them for a longer time. And when the clients have trust – they make purchases.
Now you have learned what this service consists of, how to start acquiring and where it is best to do so. The only thing that remains is to register at Portmone.com and to start treating your customers with the simplicity of payments from now on.