Processing and acquiring research

Not really. Processing is what happens after acquiring took place. Payment processing is an online money transfer technology between a buyer and a seller. Simply put, this is the way of electronic money. This path is carried out with the help of software that works due to the power of electronic banking. In this way, you can check, process, accept or reject payments made with plastic cards. The complex process of checking card details is performed with each purchase and takes a matter of seconds. This happens so quickly owing to round-the-clock work of processing centers or payment processors, which ensure uninterrupted processing.

A lightning-fast transfer of electronic money from the seller to the buyer is actually a complex and branched process in which many parties are involved. This is a system that communicates with each of its participants, verifies the data, transfers it along the chain and encrypts it according to all security rules. The links in the online processing chain usually include a seller of goods or services, a customer, a bank that issued the buyer's payment card, an acquiring bank accepting payments from the buyer, a processing center that processes payments, and an international or national payment system - for example, Visa or MasterCard.

Most countries have legislation that regulates card processing on the Internet. As a rule, this is a certain set of rights and obligations called PSP / IPSP License (Internet Payment Service Provider License). Usually, IPSP allows companies to initiate the clearing procedure, i.e. debiting money from one account and crediting it to another. In addition to various PSP and IPSP licenses, there are also regulatory documents of regulatory companies that define the general rules of the game in the global card payment market. The most extensive of these documents is VISA's Card Acceptance and Chargeback Management Guidelines.

To minimize chargebacks, VISA, MasterCard and other card regulators have introduced severe sanctions against merchants providing low-quality services in the form of fines for each case of payment cancellation. Tariff scales have been created that determine the basic commissions depending on the Merchant class. The maximum allowable chargeback levels were also determined - about 2% for VISA credit cards and 1% for MasterCard. Moreover, the regulators set a limit on these percentages not for the trading enterprises themselves, but for banks. In addition, VISA and MasterCard have divided the planet into special zones - acquiring cards of European residents in American processing will cost the recipient more than paying through European processing or a bank. This commission is called "Interchange rate".

Yes, we have the necessary expertise in this and adjacent fields. In short, opening a merchant account involves a registration of a special bank account for a financial institution, which allows you to accept funds for the complete identification of a user or buyer. In order to open a merchant account in both Europe the United States, an agreement is required between the acceptor and the acquiring merchant bank, which specifies the nuances of calculating transactions with payment cards. Such an agreement provides for the obligation of the intermediary to comply with a number of operating rules that are regulated by card associations.

The soaring percentage of chargebacks has led to the emergence of two types of payment processors that specialize in reducing their number. The first type is organizations that reduce the number of chargebacks by legal means. Such companies create call-centers for technical support, audit websites, logistics and consulting on business reorganization - please note that we offer some of such services as well. The second type is firms specializing in working with shadow businesses with large turnovers and a return rate of more than 4%. They create a revolving door of legal entities and manage to withdraw money from accounts before the regulator prohibits transactions and blocks the “hold” withheld insurance interest. Such practices are totally illegal and we can’t help you if you’re looking for a provider.

Any legal provider needs to obtain an international certificate of the PCI DSS data security standard and confirm compliance with it annually. PCI DSS is a global community dedicated to the ongoing development, improvement, storage, dissemination and practical implementation of banking data security standards. The Payment Card Industry Data Security Standards Council was established by the international payment systems Visa, MasterCard, American Express and others. The main requirement of PCI DSS is to limit access to bank card data as much as possible. Protected data includes the full card number and the CVV2/CVC2 code (last 3 digits on the reverse side). The optimal solution is not to have access to them at all, but instead to use certified providers to accept payments.

A payment gateway is a technical solution that allows online business owners to accept payments on a website using bank cards and ensures customer data verification in the shortest possible time. This gateway is the link between your website and the acquiring partner. A payment gateway is required to make any kind of payments over the Internet. To ensure the secure transfer of payment information between the buyer, the online merchant and the acquirer, the payment gateway protects the card data by encrypting the buyer's sensitive data, such as the card number.