Card Acquiring Agreement

Fees are at the centre of many conversations between merchants and acquirers. The security of electronic payments is a major concern for these institutions because of the high risk of acquiring banks and their key position in the payment chain. That`s why they were involved in the development of electronic point-of-sale security standards, such as PCI-DSS. Many accepting banks insist that their traders comply with the PCI-DSS. If merchants do not comply with PCI-DSS standards, merchants may themselves be responsible for losses due to fraud that may result from fines from card systems. [4] When a cardholder uses a credit or debit card during a purchase, the accepting bank authorizes or refuses the transaction on the basis of the data of the bank network and the cards that issue it. In short, the recipient bank receives the merchant`s request for payment authorization and then sends it to the issuing bank for approval. If the purchase is approved, the funds are deposited into the merchant`s account (usually at regular intervals). Before signing up with an acquiring processor, read the absetor bank takes the risk that the trader will remain solvent. The main source of risk for the opposing bank is the inversion of funds.

Consumers can trigger fund reversal in three ways; 3.1 The merchant undertakes to respect from time to time the rules established by card systems. Payment methods and applicable card schemes are listed in the Merchant Services Contract. Merchants recognize that the schematic rules are found on the respective websites of the card systems. In the event of disagreement between Bambora and Merchant over the interpretation of the system`s rules, Bambora made the final decision. A commercial contract is a contract that governs the relationship between a company and the merchant who buys a bank with which he is a partner. This document describes all the electronic payment services that the merchant who buys the bank is willing to provide. The Acquiring Processor is a service provider.

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Jenny Smith