Merchant Acquirer

tags :

Summary #

• Goes out and acquires merchants and provides them tools and facilities to accept and process card-based payment.

• Examples:

  • Citibank
  • Wells Fargo
  • US Bank and
  • Chase

They take the Interchange from the transaction and sends it to the Issuer Bank, and sends the network assessment to the payment network, so this is considered network for them.

How they make money? #

Revenue from hardware #

They might have reseller agreement with PoS manufacturers like Vantiv and First Data. They may have app store where developer can develop third party apps.

Revenue from each transaction #

They charge merchant “Acquirier Fee” to the merchant. This will be either flat fee or percentage of every transaction.

They may also access fees when cards are declined or when chargeback happens.