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Merchant Acquirers: How to Improve Your Service

In the world of ecommerce, merchants need an online merchant account in order to accept card payments over the internet. An acquiring bank, also known as a merchant acquirer, is a financial institution that manages this account and accepts debit and credit card transactions on behalf of the merchant. A merchant acquirer is a registered member of a card association, such as Visa, Discover, or Mastercard, which connects them to the cardholder's issuing bank to verify their information and obtain payment.

When setting up a merchant acquiring solution, acquiring banks should choose a program with the following features to ensure the highest quality service.

Risk reporting

Your merchant acquiring solution should provide risk reporting services that enable you to develop an efficient risk management strategy. Choose a program that allows you to review merchants' processing and calculate chargeback rates, so you can resolve any issues with your merchants.

Anti-fraud protection

It's important for online merchants to provide a safe and secure payment platform for their customers. To protect both consumer and merchant information, a bank's merchant acquiring solution should include anti-fraud protection. Address Verification Service (AVS) and Card ID Verification (CVC) are two essential features that should be offered and provided to your merchants. The former helps eliminate fraud by cross-examining a customer's billing address, while the latter validates the card's security code.