Which word to use: acquiring or processing?
News •Aug 28, 2019
Number of inquiries we get on monthly basis setting payment processing as a point of core interest is estimated in hundreds. Not many of inquirers though need one, as people have different interpretation of this word. To understand the actual meaning of the word "processing", in the way payment industry experts do - read our latest guidelines. #dectaEDU #nerdsinpayments
Simple answer is - acquiring. If you mean receiving, getting funds, accepting cards then the word you need - acquiring. Term "acquiring" comes from banks' incentive in the moment of transaction. "Acquiring banks" requests funds transfer while "Issuing banks" - accepts or denies the transaction and allows funds relocation to merchant account in acquiring bank.
As industry was developing, both issuing and acquiring have become services available not only in banks, but also financial institutions like Decta. So, authorization request, necessary to make a transaction, now can not only be sent by banks, but also by any authorized financial company, having access to International Payment System as, in case of Decta, we have Mastercard and Visa Principal Membership.
Thus, Acquiring solution will allow you to receive funds from your customer.
Processing, or technical processing, unlike acquiring, is a technical solution for financial institutions and banks. Holding both financial license, which allows managing funds of their clients, and membership at International Payment System that connects them to payment cards around the world, these companies are entitled to provide issuing and acquiring services. But having permission and connection is not everything you need to to run card business. To make the transactions, these institutions must have IT infrastructure, in this case - technical communication, wires, connecting acquirers and issuers with International Payment System. These should be secure, functional, reliable and meet certain communication protocol requirements. In case of Decta – it is PCI DSS Level 1, the highest standards to transmit, store and process credit card data.
Thus, Processing solution will technically endow acquirers and issuers, which can be financial institutions and banks to send and receive payments of their clients.