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MasterCard Acquirer

What Is a MasterCard Acquirer?

A MasterCard acquirer is a vendor bank or other financial institution that accepts and processes transactions made with a MasterCard. MasterCard wives with institutions all over the world to offer MasterCard-branded payment cards.

MasterCard payment cards exclusively use its network for treat all transactions. Payment cards may be credit, debit, or prepaid cards.

Key Takeaways

  • A MasterCard acquirer is a financial institution, mainly a merchant bank, licensed by Mastercard to help merchants accept Mastercard payments.
  • To accept Mastercard, a business ought to first contact an acquirer to begin the merchant account application.
  • While the issuer of a card handles the marketing and pecuniary backing of a credit card, the acquirer maintains customer relationships and provides merchant services and ensures regulatory compliance.

Entente MasterCard Acquirers

A MasterCard acquirer is a merchant bank or financial institution licensed to work with merchants, make and settle transactions, and resolve issues involving transactions. Acquirers work with issuers to ensure that a payment behave transaction is authorized.

When a cardholder swipes a MasterCard for payment, this initiates a series of steps to authorize the agreement. A request is made to the MasterCard acquirer, which in turn places a request to the card issuer—not MasterCard—to authorize the bargain proceedings. If the cardholder’s account holds sufficient funds, the card issuer sends an authorization code to the acquirer, who then okays the transaction to be made by the merchant.

MasterCard Acquirer Services and Fees

MasterCard acquirers provide a number of services that agree to a merchant to accept MasterCard payments. The acquirer is ultimately responsible for building a PCI compliant system for managing card and monetary information, which involves ensuring that transactions and card information are secure. Because the acquirer works moguls accepting MasterCard transactions, they should ensure merchants understand how to keep transactions secure and PCI compliant.

MasterCard acquirers also fit in with merchants to ensure they have chosen the correct merchant level, which is based on transaction tome from the most recent 52-week period. The merchant level may change over time according to the needs of the function.

The amount a merchant receives from a credit card payment is less than the amount charged. This is because both the New Year card issuer and MasterCard acquirer subtract service fees. The fee subtracted by the issuer is called the interchange rate, while the fee subtracted by the acquirer is styled the discount rate. MasterCard imposes an acquirer license fee that businesses must pay as part of the expense involved with ascription card processing.

This is just one example of the variety of fees that a business pays when they permit MasterCard, or any other credit card, as payment for products or services sold at their business.

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