Did you know that, according to Statista, eCommerce market revenue in the EU is forecast to increase by $344.7 billion, reaching $977.36 billion (+54.48%) from 2024 to 2029?
As a merchant in today’s world of commerce, understanding the complex nature of payment processing can be crucial for your success. Merchant acquiring plays a pivotal role in allowing businesses to accept payments from customers in simple, fast and secure way.
Whether you run a physical or online business, understanding merchant acquiring can help you choose the right acquirer, offer suitable payment options and increase profitability. In this article, we will explain merchant acquiring, its benefits and what to consider when choosing an acquirer. Let's get into it.
What is a merchant acquirer?
A merchant acquirer (also known as an acquirer or acquiring bank) is a financial institution licenced by the major card schemes (e.g. Mastercard or Visa) to accept credit or debit card payments for merchants. While merchant acquiring traditionally referred to card payments, the role of acquiring banks has expanded to encompass various payment methods.
Merchant acquirer’s main functions are to provide businesses the ability to accept card payments from customers by setting up merchant account and providing POS terminals and/or payment gateway services for in-store and eCommerce merchants, respectively. Their other fundamental role is to secure the processing of transactions, smooth clearing and settlement of funds. An acquirer is siginificantly involved in managing the risk associated with payment transactions, including fraud prevention, chargeback management and compliance with industry regulations and standards such as the PCI-DSS.
Why are merchant acquirers important for businesses?
Merchant acquiring offers multiple benefits for businesses seeking to streamline payment processes and enhance customer satisfaction. Here's a few of them:
Increased sales and convenience
Merchant acquiring allows businesses to accept a variety of payment methods, which can increase revenue by offering more convenience to customers. Whether it is credit cards, debit cards or mobile payments, offering diverse payment options can significantly boost sales.
Provide enhanced security
Merchant acquirers provide robust security measures to ensure the security of transactions by enforcing PCI-DSS compliance, deploying fraud prevention tools, implementing 3D Secure for added authentication, utilising tokenisation and encryption, and managing chargebacks to reduce risk. These measures are essential for protecting both merchants and customers from fraud and data breaches in the payment ecosystem.
Detailed reporting
Acquirers offer detailed reports and payment data, providing merchants with valuable insights into customer behaviour and payment performance. These reports can help businesses make informed decisions such as identifying the most effective payment methods or understanding acceptance rates and optimise their operations. By leveraging this data, merchants can streamline processes and ultimately enhance the overall customer experience. Detailed payment reporting is essential for continuous improvement and maintaining a competitive edge in the market.
Expansion opportunities
Partnering with the right merchant acquirer can help your business expand beyond borders, reaching a wider audience in new markets. For example, a global acquirer like emerchantpay can enable businesses to seamlessly accept cross-border payments in new regions, providing the infrastructure and support needed to grow internationally. With the right cross-border payment solutions, businesses can offer a frictionless payment experience to consumers worldwide, fostering growth and expanding their reach.
How to choose the right merchant acquirer
Picking the right merchant acquiring partner is crucial for smooth transactions for your business. The right partner can offer more than just transaction processing; they provide the tools and tailored industry expertise to drive your business growth. We have compiled some questions you should consider asking when choosing an acquirer. Look at them below.
Does the merchant acquirer have experience in your industry?
Choosing an acquirer with specific experience in your industry can make all the difference. An acquirer who understands the unique needs and challenges of your sector is better equipped to provide tailored solutions. An acquirer with a proven record of accomplishment in your vertical will have the necessary insights to support your growth.
Having access to responsive, knowledgeable support is critical, especially if issues arise with payments.
Do they offer the right tools and technology?
Technology is key. The right acquirer should offer innovative payment solutions that make transactions faster, more convenient, more secure and cost-efficient. Look for features like seamless technical integration, multiple local and global payment methods and an easy-to-use gateway that can be connected to your website or other platforms. The focus should be on making the payment process smooth and hassle-free, so you can focus on running your business.
Are they focused on security?
Security is non-negotiable. Your acquirer should have robust security measures to protect your business and customers as any breach or compromise can lead to serious financial losses and damage to a business’s reputation. Look for an acquirer is fully PCI-DSS compliant to ensure cardholders data is protected and that provides a range of advanced security solutions, including AI-driven fraud prevention tools, 3DS protocols, Address verification service (AVS) and device ID verification. These features demonstrate a strong commitment to protecting transactions and securing your revenue, ensuring peace of mind for merchants and their clients alike.
Will the acquirer help you manage chargebacks?
Chargebacks can be a significant challenge for merchants, often leading to financial loss. A good acquirer should offer support beyond just processing payments—they should help you manage and mitigate chargebacks. Services such as dispute management and fraud prevention are essential, allowing you to focus on your business while reducing the risk of costly chargebacks.
What payment methods does the merchant acquirer support?
Your acquirer should support a wide range of preferred payment methods, including cards, eWallets, real-time bank transfer, Buy now pay later (BNPL), vouchers, QR codes and many more. This flexibility enables you to cater to various customer preferences, ensuring you can provide the payment options that resonate most with your audience—whether they favor traditional cards or modern alternatives.
Do they have global reach?
Does your business operate globally or does it plan to expand internationally? It is best to choose an acquirer with a strong global presence. A global acquirer with an extended reach allows you to offer a seamless payment experience to customers and payment methods preferred by consumers in those locations.
emerchantpay your partner for global acquiring
As payment technology evolves, so does the landscape of merchant acquiring. Innovations like contactless payments and mobile wallets are changing transaction dynamics. To stay competitive, merchants must embrace these changes. Choosing the right acquirer tailored to your business needs is crucial.
emerchantpay is a trusted global acquirer and PSP with PCI Level 1 compliance. We customise your payment processing with our in-house and global merchant acquiring solutions. We also provide personalised payment expertise for merchants, enabling access to round-the-clock technical support with their dedicated Account Manager and Risk Analyst. This enables you to maximise global business growth.
Ready to accelerate your business growth? Speak with our payment experts today!