Payments

Question 1

Merchand Acquirer

Answer 1

• “distribution and sales” arm of the payments industry. Acquirers sign merchants to card acceptance agreements and are typically the merchant’s first (and primary) point of contact, contracting directly with the merchant. Acquirers earn a gross “discount rate” of roughly 2% of the sale amount, most of which is remitted to the card network and ultimately the card issuer as interchange income
• Net acquiring revenues (net spread after subtracting interchange and payment network fees) are a fixed transaction fee (for larger merchants) and/or a percentage of the sale amount (for smaller merchants). Merchant acquiring spreads are inversely correlated with the size of the merchant

Question 2

ISO

Answer 2

Independent Sales Organizations

Question 3

ISV

Answer 3

Independent Software Vendors

Question 4

VARs

Answer 4

A value-added reseller (VAR) sheet is a file that contains important payment processing information

Question 5

MID

Answer 5

A merchant identification number (MID) is a unique code that helps identify a merchant account. It is generated by the processor after the account has been created and is used to complete different actions at various stages throughout the payment processing lifecycle

Question 6

ISV

Answer 6

Integrated Software Vendor (ISV):
Seamlessly integrate payment processing into your software or app to boost revenue and add greater value
Easily and securely integrate payment processing into your software or platform to generate a new line of revenue and improve customer service

Question 7

Payfac

Answer 7

A Payment Facilitator or Payfac is a service provider for merchants. When you want to accept payments online, you will need a merchant account from a Payfac.

Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. In general, if you process less than one million annually, you would be looking for a PSP merchant account.

Question 8

POS

Answer 8

A point of sale (POS) is a place where a customer executes the payment for goods or services and where sales taxes may become payable. A POS transaction may occur in person or online, with receipts generated either in print or electronically. Cloud-based POS systems are becoming increasingly popular among merchants