Responsibilities of the acquirer

In general: An acquirer (or card issuer) has a number of important functions beyond authorising transactions and processing payments. Here is a more detailed explanation of the acquirer's responsibilities:

1. Authorising transactions

   • The acquirer communicates with the card issuer's bank (e.g. the customer's bank) to verify that the customer has sufficient funds and that the transaction is legitimate. The acquirer authorises or declines the payment based on this information.

2. Managing transaction data

   • The acquirer collects and processes data from the transaction (e.g. amount, time, location) and passes it on to the appropriate accounting and reporting system.

3. Recording and settling payments (settlement)

   • When a transaction is authorised, the acquirer is responsible for transferring the money from the customer's bank to the seller's account. This is done through a process called ‘settlement’, which ensures that the money is deposited into the seller's account within a certain timeframe (usually 1-3 working days).

4. Ensuring security and fraud prevention

   • The acquirer implements security measures to protect the transactions against fraud. This includes technologies such as 3D Secure, tokenisation and risk assessment to prevent unauthorised transactions from taking place.

5. Managing fees and commissions

   • The acquirer charges a transaction fee for each completed payment. These fees may vary depending on various factors such as the type of payment (e.g. credit card, debit card), the geographical region and the volume of transactions completed. The fees are paid by the merchant.

6. Reporting and analysis

   • The acquirer provides reports and analytical tools to help the merchant monitor their payments and gain insights into their sales. This can include detailed transaction history, shipping data, late payments and more.

7. Follow-up and customer service

   • If there are issues with payments, such as invalid transactions or refunds, the acquirer is responsible for handling these cases and providing customer support for both sellers and buyers.

8. Compliance with rules and standards

   • The acquirer ensures that all payment processing complies with financial regulations and security standards such as PCI-DSS (Payment Card Industry Data Security Standard) and other laws governing payments.

Summary:

The role of the acquirer is much more than just authorising transactions. They are responsible for the entire payment flow - from authorising and securing the transaction to handling the funds and providing support to both buyers and sellers. They also have a major responsibility to ensure compliance with financial regulations and offer reports that help businesses monitor their sales and payments.