Association. An association is an entity which licenses bank credit card programs. The association deals with a set of operational issues for the benefit of its members. The association performs such tasks as transaction processing, authorizations, interchange and fee processing.
Issuer. An issuer (issuing bank) is a financial organization that issues cards to its clients. An issuer also performs the role of provider of credit and related services for its customers. Issuers belong to one or several payment card networks. Issuing banks answer to acquiring banks for reimbursement of cardholders’ transactions. After such reimbursement, the issuing bank charges the card owner the respective amount and collects the funds.
Acquirer. An acquiring bank (or simply an acquirer) is a bank that grants credit card merchant accounts. An acquiring bank partners with payment card associations (Visa, MasterCard, and others) as well as with the merchant’s bank. Acquiring bank is sometimes called clearing bank, as it is authorized to clear the funds. An acquiring bank is responsible for handling the funds between the moment the amount is charged and the moment it “lands” in the merchant’s bank.
International Payment Gateway can assist companies in finding the providers of merchant services they are looking for. We can turn payment processing into an easy-to-understand mechanism simply by describing it in understandable words. Merchant services industry may not be as complicated as it seems, if you talk about it using a universal and simple language.
Quite a lot of PSPs and merchants partner with International Payment Gateway. Maybe, you can benefit from becoming one of them. Contact us, and we will gladly introduce you to the payment solutions, allowing you to occupy your rightful place in the merchant services industry.