Trading and internet acquiring: what it is in simple terms.

The concept of financial literacy significantly simplifies life. In this context, it is important to know many new terms. For example, what is a bank acquirer and how does it work. After all, this process can be used to your advantage.

When understanding what bank acquiring is, it is worth breaking this process down into simpler stages. In simple terms, what is trade acquiring: it is a unique tool for cashless payments.

In simple terms about the simple process

So, what is internet acquiring: it is a service provided by banks and financial institutions for receiving cashless payments from bank cards. This means that payments through the internet become simpler and more accessible.

Moreover, with each passing year, cashless payment is becoming more popular and effective (and also simpler). The essence of acquiring lies in the process of transaction processing, where the buyer pays for a product or service using their card, and the seller receives the money into their account. Even without knowing this complicated name, many have been using acquiring for a long Time.

Immediately, when delving into this topic, it is necessary to understand what types of acquiring exist:

1. The payment process for businesses (trade type). The process occurs in stores and at retail points. There, the customer pays for their purchases through a special terminal.

2. The second type of acquiring concerns purchases through the internet. Usually, this is about platforms that sell something and offer payment directly on the site.

These two types of acquiring are maximally automated and simple. It is also easy to use them.

What you need to know about trade acquiring?

Trade acquiring is a system that allows accepting bank cards in shops, cafes, restaurants, and other points of sale. That is, businesses simplify the process of accepting payments for themselves as well.

The essence of the process is that when paying, the buyer swipes their card through a special device – a POS terminal. The terminal sends information about the payment to the bank, which checks whether there are enough funds in the buyer's account and either approves or declines the transaction. The entire procedure takes a couple of minutes. In stores, this type of payment has been practiced alongside cash payments for a long time.

An example of how acquiring occurs:

1. So, the customer wants to pay for their purchase.

2. The seller enters the necessary amount and asks the customer to pay by card.

3. The purchaser swipes their card (through the terminal).

4. A request goes from the terminal to the bank (this bank services this specific terminal).

5. The bank sends a request to the bank that issued the card.

6. The second bank checks whether there are sufficient funds in the account and confirms or declines the request.

7. The transaction is either confirmed or declined. That is, the purchase is either paid for or not.

Sometimes there can be glitches in this process, but such occurrences are rare.

A few words should be said about the advantages of trade acquiring:

1. Convenience for customers – the ability to pay for goods and services with a card, which reduces the need to use cash.

2. Increased sales – customers are more likely to make purchases if they have the option to pay by card.

3. Security – minimizing risks associated with storing and transporting cash.

One should not forget about such an advantage as accounting automation – acquiring allows for the automatic recording and processing of payments.

What you need to know about internet acquiring?

There is also a second type of this process. Internet acquiring is the transfer of funds for goods or services through websites or other resources on the internet. In this case, there is no terminal, and the whole process happens online.

In this case, the system is even simpler. On the website or in the application, the client fills out a form (special). The client must enter their details in order to pay for the product or service.

The main stages of internet acquiring are:

1. The client selects a product or service on the website and proceeds to payment.

2. The integrated payment system requests the client’s card details.

3. The information is sent to the acquiring bank, which processes the request.

4. The acquiring bank connects with the issuing bank to check the funds.

5. The transaction is confirmed.

This type of acquiring has significant advantages. First of all, it is easier for the client. They can immediately make a purchase at a favorable price. This service is also available in any country. Moreover, it is safe. Modern internet acquiring systems are protected by data encryption technologies.

Thanks to this system, shops have the opportunity to increase the number of sales. Thus, more customers buy, and more products can be displayed. Acquiring provides instant payments. Transaction processing occurs almost instantly, accelerating the purchasing process.

The main difference between trade and internet acquiring lies in the method of interaction with the customer and the physical location of the sales point.