Why a Merchant Acquiring Agreement is Essential for Your Business

From a customer’s point of view, a payment transaction is an uncomplicated process that often only involves a quick tap of their card. But behind the simple transaction is a complex system of financial institutions that work together to make the transaction possible, with the acquiring bank as the key component in the payment process machinery.

The acquiring bank provides the merchants with all the necessary tools for payment processing, allowing the merchants to accept digital payments, expand their customer base, improve customer experience, and increase sales. Acquiring gives merchants several benefits, such as:

• More payment options: credit and debit cards, electronic payments and more
• Streamlined payment process, letting the merchants focus on their business
• Secure risk management systems to reduce the risk of fraud
• Enhanced customer experience, increasing customer satisfaction and loyalty

The difference between acquiring agreements and acquiring service

In this blog post, we are talking about acquiring agreements and acquiring service. So, what is the difference between an acquiring agreement and an acquiring service?

Acquiring agreement

An acquiring agreement is a legal contract between a merchant and an acquiring bank or payment service provider that outlines the terms and conditions of the payment processing services. It includes details such as the types of payment methods supported, processing fees, settlement schedules, and dispute resolution procedures. The agreement also sets out the responsibilities of both parties, including compliance with applicable laws and regulations.

Acquiring service

An acquiring service is a financial service that, among other services, includes the acquiring agreement and enables merchants to accept and process electronic payments from their customers. By using an acquiring service such as the Billwerk+ acquiring service, you can simplify the payment process, improve your cash flow, and increase sales by offering customers more convenient and secure payment options, combined in one easy-to-use product package with your Billwerk+ payment gateway and subscription management administration. As Billwerk+ collaborates independently with several acquiring banks, our acquiring service can match you with the best possible acquiring deal for your business needs, giving you access to the payment methods your customers want.

Acquiring services can support a wide range of payment methods, and provide additional services for the merchant, such as:

• Credit and debit cards
• E-wallets
• Direct debit
• Bank transfers
• Fraud prevention
• Chargeback management
• Reconciliation reporting

Merchant acquiring – a necessary safety net

As the acquiring bank enables the merchants to accept various forms of payment methods and manages the payment processes, having an acquiring agreement is necessary as a merchant. In general, merchants need an acquiring agreement to be able to accept card payments. This agreement outlines the terms and conditions for accepting card payments and provides the necessary tools and resources for secure payment processing. It is not recommended to accept card payments without a proper acquiring agreement in place, as it can result in legal and financial risks. Having an acquiring agreement is thus a necessary safety net that any merchant would not want to be without.

When the merchant uses the acquiring service from Billwerk+, they not only get the acquiring agreement best suited for their business, but they are also ensured that the complexity of the payment process and fraud prevention is handled securely and compliant with PCI DSS, and that they get the needed access to the acquiring bank’s relationships with payment card networks such as Visa, Mastercard, Dankort, American Express etc.

To get a merchant acquiring account with Billwerk+, your website needs to fulfil some requirements. This is to ensure that your business is following the EU consumer law, among other requirements. You can read more about the conditions in our help center article “Website requirements to accept cards”.

To summarise, you as a merchant can rely on Billwerk+ acquiring service to enable payment processing, provide security against fraud, ensure compliance with regulations, streamline financial processes, grant access to payment infrastructure, and allow for scalability and business growth. Plus, we offer you dedicated customer support with great knowledge and experience in the payment and subscription industry. If you need any guidance or have any questions, the Billwerk+ support team is happy to help you.

Test the acquirer-independent payment gateway from Billwerk+ for free (no credit card required for registration) and see for yourself, how flexible you can be by selecting the right acquirers for your markets and strategy.